Fannie Mae-No Politics (FNMA)

[bcde]

"Yes, but I don't think there will be a formal bk chapter filing for restructuring in the court. It will be done internally to restructure the capital stack through exchange offers."

Conservatorship was forced on FnF not because FnF were bankrupt or FnF needed any capital. FnF had about $100B capital, positive cash flows. FnF had lowest foreclosure losses. Now FnF have the best mortgage portfolio. FnF have been profitable since last 8-10 years and are projected to be profitable for foreseeable future. FnF have paid back all the obligations as per original SPSPA. So why even talk about bankruptcy?

Conservatorship was imposed to save the frozen US housing economy. Gov used private share holder companies for public purpose at the cost of private share holders using FnF private capital without any compensation for the service.

Besides conservatorship was imposed by unconstitutionally structured FHFA along with unconstitutionally written HERA.

Best remedy would be to abolish HERA along with FHFA. HUD and regular regulatory agencies should be regulating FnF.