Fannie Mae-No Politics (FNMA)

[roketsurf]

TRUMP!!!
https://www.fool.com/investing/2021/12/09/3-stocks-where-donald-trump-could-be-a-catalyst/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
3. Fannie Mae and Freddie Mac
Trump has also been recently involved with the government-sponsored entities (GSEs). After the government placed Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) under conservatorship during the Great Recession, shareholders have been trying for years to get the two giant mortgage financing companies released from government control. They sued the government for requiring the two agencies to give all of their profits in the net worth sweep and also for making it overly difficult for the President to remove the director of the Federal Housing Finance Agency (FHFA), the regulator of Fannie and Freddie.

The Supreme Court earlier this year dismissed the first claim over the net worth sweep, but did not completely dismiss the challenge over the President and the FHFA director. In its opinion, the Supreme Court stated: "Or suppose that the President had made a public statement expressing displeasure with actions taken by a Director and had asserted that he would remove the Director if the statute did not stand in the way. In those situations, the statutory provision would clearly cause harm."

In November, Trump sent a letter to Sen. Rand Paul (R-Kentucky) that essentially said he would have removed former FHFA Director Mel Watt, who held the position when Trump first got elected, if he had the power to do so at the time. Trump then stated in the letter that he would have ordered Fannie and Freddie to be released from government conservatorship. The letter sent Fannie and Freddie's stock price soaring more than 25% on Nov. 30. I do wonder if this letter is too little too late. Trump was able to appoint FHFA Director Mark Calabria in 2019, who was working toward releasing Fannie and Freddie from conservatorship before he was removed. Also, the letter came after the Supreme Court case ruling. Still, the case is currently in the Fifth Circuit Court of Appeals, and it's clear that investors think the Trump letter gives them a chance.