Fannie Mae-No Politics (FNMA)

[nats1]

I'm assuming you are using "30 years" because every $ in cash they retain the liquidation preference increases,

It wouldn't be 30 years but it would be some considerable period even if we get some money back from the NWS. I didn't go back and look it up, but my understanding is that the cap requirements are based on a percentage of assets - which are growing. So the cap requirements raise every year and the retained cash also grows somewhat faster and eventually closes the gap. But not in just a few years. That's why organic recap is not practical in an environment where the Government seeks to resolve this in the foreseeable future.

Otherwise, I agree with a lot of what you said.

Nats