Fannie Mae-No Politics (FNMA)

[Patswil]

So SEC green lighted this thing, meaning someone over there must have known in advance.

Layton said it was clear they were being informed of FHFA's decision to do 3rd/NWS and input was not wanted or requested. $3B reserve was questionable since volatility would lead to draws
Layton claims he didn't know about PIK option until the lawsuits started [No one read the PSPAs?] Thought growing liq. pref. would also cause problems, even though concerns were in bonds, which are senior to SPS because "it would look like FnF are in trouble"
FnFan
@FnFGateFan
·
8h
Never discussed a pay back option, and got impression that Tsy was not interested. "The Govt", meaning some combination of Tsy/FHFA/White house, viewed FnF charters as flawed, only wanted release after legislation to change it. [Don't like law so we'll break it until they change]