Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi No Name

Any thoughts about CFR 31 902.2?

Section 902.2 of title 31 of the Code of Federal Regulations sets forth standards for the “compromise of debts” by the Administration. On the basis of its review of those standards, CBO believes that a reduction in the value of the Treasury’s preferred shares could be undertaken as part of the recapitalization of the GSEs.

As you know this restructuring will not be governed by the US Bankruptcy Code, State Insolvency laws or FDIC guidance. Dont think you have dealt with USG accounting and compromise of debt issues before? - have you?