Fannie Mae (FNMA)

[Robert from yahoo bd]

Okay. The fundamental problem here is the gargantuan transfer of much needed (and earned) capital from the GSES balance sheets transferred to the UST and in return for nothing to build up Tier 1 Capital.

The slow methodical rehabilitation of the GSES balance sheets seems to be fine with all stakeholders EXCEPT us beleaguered and battered shareholders.

It also seems clear that: (1) no one wants a repeat of 2008-9 and (2) Tier 1 Capital is important to financial intermediaries during times of crisis, especially one that is so active in the US Secondary Mortgage Market.

Sure politicians love to spend money, but what is the catalyst that will move the federal government to do a recap?