Fannie Mae (FNMA)

[bcde]

"I understand that many people disagree with me, but my opinion is settlement must precede recap, and likely so must release in some stairstep graduated capital build up plan.
"

YankGhost,

If you think in terms of Recap and Release then there are millions of show stoppers and for these reasons Recap and Release will never be successful by any measure. With Recap and Release no one can predict when Release will happen. And this reason alone will prevent Recap happening under conservatorship. This is no different than catch22 paradox.

But if you start thinking in terms of Release and then Recap then there are no show stoppers. Most of the lawsuits would be dismissed or plaintiffs will request voluntary dismissal of cases. All things will become normalized and free market demand and supply forces will start shaping the future of FnF. At any stage the question of failure does not arise. Things will be measured in terms minor setbacks and time horizon. Best of all the Release is immediate and benefits start flowing in immediately for all stakeholders.

Release and Recap is the most elegant way to go.