Fannie Mae-No Politics (FNMA)

[camaro4me]

Another way for FnF to raise core capital is for the government to give back the $$$ they stole.

"12 USC 4502(7) defines core capital; the only way FnF can raise their core capital amount is by retained earnings, issuing new common shares, and issuing non-cumulative preferred shares. Nothing else can count, not even contingent or convertible debt."

Then, why not issue new preferred shares at 2% interest to recapitalize & release immediately ? Suppose the GSEs need $200B, 2% interest will mean $4B interest payment a year which is totally affordable to the GSEs.