Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

You would think with 2 profitable companies pulling in billions in Net Income, that the FA's, SM, MC, and the twins could come up with a solution IF they all work TOGETHER!

I think one of the MAIN PROBLEMS is SM and the UST are dragging their feet, continue to fight and defend the Net Worth Swipe in courts, and publicly, SM says that the government should be "fairly compensated".

SM seems like sort of an enigma, FOR YEARS SAYING WE HAVE TO GET THE GSES OUT OF GOVERNMENT CONTROL on the one hand, and defending the Net Worth Swipe on the other.

The "need for political cover" story is getting old!

In the meantime they continue to build capital via Retained Earnings BUT AT THE EXPENSE OF A DOLLAR FOR DOLLAR INCREASE IN USTS LIQUIDATION PREFERENCE.

I think with ALL these various players, each with their own specialized interests in the GSES (including us), the courts may end up being the way this thing gets resolved.