Fannie Mae-No Politics (FNMA)

[philipmax]

KIp, good point!
Once we can figure out the gov't game plan, we'll be able to predict the final 'settlement'. I concur with you that the new team wants to enlarge the playing field by allowing the TBTF banks a chance at the brass ring that F&F have been basking in for 84 years. To that end Mnuchin and Co. will dilute shareholders' value AND diffuse F&F earning power by letting TBTF banks and insurance companies to steal market share from these GSEs.
The problem with that concept is that the banks' greed will push us back into the brink. This is a bad idea, since F&F are the very instruments designed to backstop the banking industry at times of illiquidity. Depleting their profits and capital will only force the Treasury to step in with much more intervention than contemplated and at far greater cost to this Nation than the 2008 debuckle.
Rest assured that this folly will be adopted by our 'wise' men at Treasury...until the next time.