Fannie Mae-No Politics (FNMA)

[LuLeVan]

I never did see exactly what adjustment is applied to balance sheet assets to arrive at "adjusted total assets" (upon which the 3% CET1 exit requirement is calculated), but I used +4% as a ballpark. Based on that, and Freddie's is $88.7B. So a $70B capital raise for each would be $55B short for Fannie and $16B short for Freddie.

You have calculated that based on a 4% capital rule, Fannie's exit requirement is $130 billion and Freddie's is $88.7 billion. Why don't you use Tim Howard's figures, which say that 2.5% is sufficient because FnF are not banks and Basel III requirements are excessive? In this case, the requirement would be lowered to $84 billion for Fannie and $56 billion for Freddie. This would be a total of $140 billion and would comply with the limits set forth in the 4th Amendment.