Fannie Mae-No Politics (FNMA)

[bcde]

"Selling a new pshare at $100 with a few billion offered raises all capital needed. If needed. cheers
"

FnF have operated with 2% capital for many decades without any problem. This is a appropriate capital for insurance companies like FnF.

In the initial 11 years of conservatorship, loan sharks wanted to destroy FnF with large capital requirements. But now Trump administration want to end conservatorship and free FnF. So there is no need to impose large capital requirements.

With the current economic situation, there is no way Trump administration is going to agree for unnecessary higher capital requirements and disrupt the housing and capital markets. If any one has doubts about this, look at the experience of Jerome Powel with Trump.

FHFA will settle for optimal 2% capital. FnF can easily build this capital with retained earnings. There is no need for raising fresh capital from markets. This seems to be most probable outcome.