Fannie Mae-No Politics (FNMA)

[Patswil]

The Treasury will allow Fannie and Freddie to issue additional common stock when the following condition is met: “First, the Treasury must have exercised in full its warrant to acquire 79.9% of the Fannie & Freddie’s common stock, and second, all material litigation relating to the conservatorship must have been resolved or settled. Treasury will permit up to $70 billion in proceeds of stock issuances by each GSE to be used to build capital.”[6] “Those commitments ensure that the Treasury will provide investments in the Enterprises so that each remains solvent and can continue to provide liquidity and stability to the mortgage market, despite its lack of risk capital.”[7