Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Seems that the government is likely to settle by 2024, this could be accelerated by a favorable federal court ruling giving the shareholders a bargaining chip. However, the current situation allows the federal government:

(1) 100% control over the gses' with zero liabilities on their balance sheet.
(2) Little clarity as to engaging in an instant recap given so much litigation uncertainty.
(3) Cover to help the little guy by forcing the gses to subsidize mortgages to their targeted voter base, thus delaying and diverting much needed capital for a capital rebuild and big corporations/evil hedge fund guys be damned.