Fannie Mae-No Politics (FNMA)

[Donotunderstand]

yes

TBTF banks want equal access to GOV explicit guarantee on their paper - their private MBS - PLMBS

That is why a utility model is grrrreat for us IMO

Gov says - to get such explicit guarantee (at what ever level the GOV finally overs - e.g. re insurance that is 100% rock solid but starts post emptying of lots of other money) -- you need to do the following
A
B
C
and submit your self to the regulation of actions and profit and dividends of a utility


without such submission you do not get the same quality TREASURY guarantee


I assume TBTF banks would form subs to do this - but it would not be major competitors

And note - the entire history of private held utilities is that they earn less and grow slower than non utilities but are in Total Return (price appreciation and dividends) far closer to normal private equity than to bonds ---- a great risk reward - sometimes nearly guaranteed as those utilities get control of the regulator over time (and the good and service provided is essential - like electricity - gas - housing)