Fannie Mae-No Politics (FNMA)

[bcde]

"Total GSE mortgages is $5 trillion. Bank like standards 5% is $250B. Insurance companies standard is 2.5% or $125B. Therefore Squidly should set recapitalization at $125B. Pretty close to $150B. As a side note I now have this craving for Calamari and it’s almost midnight.
"

LOL, Do not be so unconcerned about these percentages. Even a rounding error can destabilize the markets when large amounts are involved.

Insurance like capital will be in the range of 1% to 2%. That is $50B to $100B. FnF had more than $90B core capital before conservatorship.

Recent stress tests proved that FnF will need far less than $45B (less tha 1%) capital in another crisis. Additional $50B should be more than enough in any severe crisis.