Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

Notice that 3% of the rise in assets, or around $5.2B, is greater than the amount of income they made! Thus Freddie made negative progress against its release capital threshold in Q4. That means more dilution for the commons, not less, and shows that the slow recap path is just plain infeasible (and also much slower than many think).

Thank you for highlighting this. It completely destroys the Retained Earnings Recapitalization of the GSEs.