Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

kthomp - so you’re suggesting the gov will own the vast majority of equity (79.9%) in FnF for at least the better part of 2021. To me it makes it harder to raise capital in the future and will create more legal uncertainty.

Also, in the precedent you mentioned, Citi didn’t repay the gov over $120 billion. Isn’t there the possibility of legal action. I know it has turned into a punchline, but needs to be factored into the decision making as not so “good faith” transactions could lead to more takings claims.

The above has been publicly discussed by Treasury and FHFA, and is even highlighted in Jacob’s presentation.

I think it’s a bridge too far for Mnuchin.