Fannie Mae (FNMA)

[Achilles deFlandres]

I will never defend the FHFA. I am always hypercritical of the bureaucracy and the role the play. Watt explained Private Capital shall be placed in the first 5% risk position. Are CRTs part of that? You tell me. If they aren't, is FHFA describing them as that vehicle?

The government has always intended to keep the GSE business under their wing. I question your idea of bankrupt because there was always a backstop and legislation orders to preserve and conserve for the sake of the agency. Your idea of bankrupt clearly doesn't apply because there is no receivership and the cash backstop provided by Treasury (even if made up entirely of stolen GSE funds) is sufficient to prevent bankruptcy. The businesses continue successfully and continue to funnel huge profits to treasury even if currently in the form of greater draw and liquidation preference.

Have they removed the value previously owned by the shareholders from shareholder possession? Clearly yes. That does not mean any bankruptcy unless that of an individual holding too much FNMAxxxx/FMCCxxx during the crash.

When we used to get leaks we heard of plans for the FMIC and Fannie moved into the new larger building. The CSP was instituted and there were public discussions of combining the twins in oversight. If there was a bankruptcy, I
missed it. If it was part of a plan, it was simply a means to restructuring everything into the FMIC