Fannie Mae-No Politics (FNMA)

[chessmaster315]

Its up strongly this morning because financial advisors were hired, including JPM and Morgan Stanley.

Its "my opinion" that JPM and Morgan Stanley think they can help fannie relist and add shareholder value, else they would not expose themselves to liablitity "if" they thoough fannie mae was dying under government control.

Further, its my opinion that, by accepting fees for financial advice, JPM and Morgan Stanley are "expected" to perform, and, if they dont perform, or perform badly, then fnma and fmcc shareholders could sue their financial advisors for poor advice.

In other words, both Chase and Morgan Stanley think FNMA is going to do well..if they were failing, they would not want to risk their reputation and expose them to liability risk for a dying company.

Nobody wants to insure a man on his death bed. People only want to insure healthy individuals, unlikely to die.