Fannie Mae-No Politics (FNMA)

[Potty]

Navy, you are right that Treasury may not be seeking to maximize profits in a cramdown -- Treasury did seek to maximize profits when it converted prefs in Citi to commom

Instead, Treasury has other policy goals as Michael Kao has been emphasizing in the FnF case

This is always worth a read:

Re: Fannie/Freddie-Forest vs. Trees. Imho, mechanics of recap/release less likely to be influenced by maximizing gov profit ("trees") and more likely to follow the "forest" of attracting private, 1st loss capital while preserving the affordable housing mandate & 30 yr mortgage.

— Michael Kao (@UrbanKaoboy) June 22, 2020