Fannie Mae-No Politics (FNMA)

[Potty]

I am to provide you with research now? lol

One could easily argue GSE's are FAR worse off than Citi, since technically GSE's have HUGE capital deficit of billions

So the capital situation is dire enough such that they need to meet the CET1 capital standard, rather than a punitive raise of $33 billion one can get that amount painlessly through conversion -- then do the rest of needed capital from a raise of common and/or new pref

Try reading this professional who makes a very clear case imho:

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