Fannie Mae-No Politics (FNMA)

[navycmdr]

Calabria says the treatment of shareholders

will ultimately be decided by the Treasury Department.

“I haven’t seen a term sheet yet from Treasury;

we’re still negotiating,” he says.

Calabria has consistently said that shareholders

should have been wiped out when the companies were

bailed out in 2008.

Still, money managers with Fannie and Freddie stakes

have friends in all the right places in Washington.

Paulson is a big fundraiser for President Trump.

Mnuchin invested in Paulson’s hedge fund before joining

the Trump administration. Mnuchin also served on the

board of Sears Holdings Corp. with Bruce Berkowitz,

whose firm Fairholme Capital Management is also

a shareholder in Fannie and Freddie. A spokesman for

Paulson declined to comment, and a spokesman for

Fairholme did not return calls for comment.

A Treasury official said the agency’s preference is

to work with Congress and it hasn’t considered any

specific proposals for recapitalizing the companies.