Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

Possibly. Those are fair points. One way to avoid the hedge fund optics is to deny remedy to sophisticated investors (Hedge Funds, Banks holding JPS), but not mom & pop investors.

IMO three lines of thought support this.

First, there is a securities law remedy principle in synthetic investing that holds more sophisticated investors to a higher standard of risk expectations. This further developed out of the PLS derivative mess.

Second, federal regulations already draw a similar distinction by making certain investments off-limits, from the get-go, except for highly accredited investors.

Finally neither Ps nor Ds have raised this. That very silence fact can be a dead give-away that -in fact - it is already the elephant in the room. Law clerks will mention it only when it’s necessary- that is - when a final remedy order goes in its draft stage.