Fannie Mae-No Politics (FNMA)

[bcde]

"Treasury would capitalize each LIH Co with the proceeds from the sale of its 79.9% common stock ownership interest in each GSE."

Even simpler approach is to

1. transfer all high risk and low income business to GNMA and private Banks with Gov explicit Guaranties. FHFA can continue to regulate this Business.

2, Cancel all Gov SPSPA investments in FnF with reasonable rate of returns comparable to private market rates. Also Gov should pay FnF for using FnF for public benefit. Let FnF exit GSE charter and become real private companies without Gov meddling.

With this approach Gov can restore the faith of people in Gov and control the damage done by the FHFA and Judiciary.

This seems to be best solution based on rule of law and all the stake holders and banks get some thing.