Fannie Mae-No Politics (FNMA)

[Sogo]

Howard makes great point there. Makes perfect sense, given the risk profile of the GSEs’ business. And I’d never heard that point before, in all these many years!

There is no need to have capital that’s comparable to large banks bc those financial institutions are spread out globally and those markets are more correlated than most might think. But F&F’s business is highly focused, is strictly domestic, and not correlated so strongly to global equities markets per se. Basically, the “comp” cited by Calabria is simply wrong.