Fannie Mae-No Politics (FNMA)

[Donotunderstand]

the case I suggest is that F and F be required to have a core capital amount that is likely to protect them 90-95% of the time (some one smarter than me does the math). The treasury backing is there just in case as re insurance
normal
standard
not that expensive if the underlying company has a lot of core capital

Summary

To be certain of no default we could require 500B of core capital

but instead the idea is to require enough for 90+% of the time or maybe 95% of the time (to be 95% confident there is enough is a better sentence maybe)

Then the GOV re insurance - guarantee is low cost to F and F