Fannie Mae (FNMA)

[PennMilitia]

The UST must be the backstop !

Robert this is why the UST must at least initially
be the backstop for the GSEs. In return the GSEs
can pay a monthly fee for this service until such
time as they raise their own Capital.

This will accomplish several things

1. Keep borrowing cost down for all - no massive
leveraging will be needed.
2. Provide confidence and liquidity to the markets
3. Give tremendous stability to the GSEs while
they raise Capital internally.

Furthermore there is no way for the GSEs to raise
the kind of Capital Calabria wants them to raise in
a reasonable timeframe.
Where are they possibly gonna get that kind of money
without leveraging the hell out of the companies.

In the end the GOVT put these companies in the
position they are in.

MC and Mnuchin are approaching this problem
the wrong way and it’s gonna cause all kinds of
unIntended problems.