Fannie Mae-No Politics (FNMA)

[kthomp19]

Yes, it is certainly worth re-watching. One part stuck out to me; Calabria was asked about perception of a shareholder and hedge fund windfall at 3:13, and his reponse was:

It's not necessarily a concern of mine. I'm tasked with getting them to a safe and sound condition. That's my responsibility under the law. That's my focus. If shareholders benefit or shareholders don't benefit, that's incidental to me. Building up the capital, again I'll remind you Fannie Mae is leveraged 1000:1. I have to help them build capital or they will not sustain the next downturn.

From the context it is clear that the "it" at the beginning is a shareholder windfall, and "them" in the second sentence refers to the companies.

This is quite telling when read together: Calabria is not going to take current shareholders' concerns into account during the capital raise. He wants FnF to raise capital no matter what the effect is on current shareholders.

FnF's boards also won't have any fiduciary duty to shareholders during the capital raise that gets them to a level to be released because it would happen while conservatorship is still in place, albeit right at the end.