Fannie Mae-No Politics (FNMA)

[kthomp19]

It's not me saying that FnF are essentially in bankruptcy, it's Calabria. I even provided proof. You might want to go off what he actually says rather than what you think he should say.

If you want to disagree with Calabria go right ahead. But he is the one calling the shots. If he says this is going to be resolved like a bankruptcy then that's what's going to happen, period.

It's not about their profits, it's about their severely undercapitalized state. Even winning the lawsuits, i.e. a return to a world where the NWS never happened, won't fully capitalize FnF. Either the seniors would still exist with their $193B drag on core capital, or Treasury would only "return" $4B per year for 6-7 years, at most.