Fannie Mae-No Politics (FNMA)

[kilshaw]

This is the game they are playing. "All the world is a stage" is right and for them to come right out and say that they have decided on an exclusive path forward to recapitalize, therefore they need to attract future shareholders, therefore current shareholders will inevitable benefit, they would be accused of trying to enrich their hedge fund buddies which is irrelevant since releasing the GSEs is the right thing to do and is in line with the law. I believe Calabria and Mnuchin know the right thing to do and they are playing the Washington two step, in which they are forced to speak out of both sides of their mouth, or at least appear to be considering the option that existing shareholder's could lose, in order to get things done with minimal push-back from a congress that makes a lot of noise but has no bite. The scoff was the tell. Calabria and Mnuchin's paradigm is not aligned with this rule-of-law averse group in Congress.