Fannie Mae-No Politics (FNMA)

[bcde]

"no. conversion exists because (1) it makes the recap physically easier to accomplish. if you have senious $ invested, suggest you go back and read kthomp posts carefully for explanation why! in addition (2) it exists because it makes the recap possible i.e settles the lawsuits. there is 0 chance new $ comes in until lawsuits settled."

If there is any Gov involvement in conversion or raising capital, investors will run away, knowing that Gov involvement will be unlawful and lead to Congressional investigations and more investor law suits. How would more law suits entice new investors?

Administration will not involve in any FnF activities that are specific prerogatives of private companies and their shareholders. If you read FHFA/UST official positions, it is very clear that it is up to FnF on how to raise capital and comply with capital requirements.

Another point to remember is any Gov involvement in FnF capital matters will make Gov liable for any future damages or losses and for this reason Gov needs congressional law/authorization to involve in this matters.