Fannie Mae-No Politics (FNMA)

[Fully Diluted]

Hi imtheshadow,

a 4th amendment must include a devaluation or even write-off of the SPS so that crucial court cases like the Collins case are off the table, companies can issue new stock, and Biden can't undo everything. This would then automatically end the NWS as well.

Calabria's actions are right, but the capital requirements are far too high. Nevertheless, it is still okay for Fannie and Freddie to generate an ROE around 10. That's okay - and strong as an ox.

I believe there should be as minimal regulation from the government as possible. But Fannie and Freddie are more systemically important than any other company. There simply has to be nothing wrong with them. The latest rule proposal is just fine, if you ask me. At least its approach - I haven't looked into the details yet.

If Fannie and Freddie are "Calabria adequately capitalized" at some point, they will be the 2 safest financial companies in the world. That's good for us, but comes at the expense of the current common shareholders. The only one who can interfere later is Congress. But that is, and always has been, a special risk with government-sponsored enterprises. And, of course, the FHFA could later lower the requirements again and reduce safety.


GLTY