Fannie Mae-No Politics (FNMA)

[Lajrchamp]

I don't know if we'll see any sustained SP above $10 without a release and a re-list.

Congress is the wild card in all these future scenarios. It's been a stalemate for over a decade because maintaining the status quo has been easier than gaining broad enough support for any alternative. The Repubs had both houses for awhile, and couldn't get it done. It simply wasn't something on which they were willing to spend political capital. The Dems had both houses for awhile but were fine keeping F&F in conservatorship. About seven years ago, a legislative proposal that would have codified the theft of the NWS burst the $6.30 PPS bubble created when Ackman got in.

This Congress isn't likely to support any privatization option, but perhaps they will opt for a buyout/settlement solution. It would cost a ton of money, but since when has that ever stopped them?