Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

Any idea why the Brookings Inst report compared a possible baby F/F (AFH) — as operationally similar to FHLBs? Why isn’t F/F itself a more apt comparison? If the baby has no charter & is thus neither a GSE nor a guarantor, what is its authority?

This is very curious.

Is it possible that the report and/or USG are implying (with no lack of convenient vagueness) that all new equity investors in a baby GSE must be *commercial entities*, and thus like FHLB members, also must pay a buy-in (for preferred baby stock)?

As I understand, Member preferred stock in FHLBs lacks voting or resale rights, but still must be redeemed by FHLB on demand. It doesn’t get much more ‘nationalized’ than that, right? So might UST plan to leverage its baby F/F seed investment in a similar way: by charging a membership fee to members for eligibility?

And how do we all feel now about letting the big boys take turns carving up the cake, before it’s even out of the oven?