Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

See, no analogous bankruptcy reorgs is there?

what matters is if they have the adequate capital buffer as required by law

Mel Watt thought having next to no capital was just fine, during his 8 years as FHFA Director, Congress wasn't particularly worried, nor most importantly the investors in the $13T US Secondary Mortgage Market.

Everyone knows these federal chartered companies are not going bankrupt and the $7T+ Mortgage Backed Securities these companies insure have the highest ratings in the bond markets, thus keeping access to low cost 30 year prepayable at anytime home mortgages available to hard working low and moderate income American Families.

And? And the government took 92% of AIG. They could easily do the same here but IMO they will take more.

The federal government has other more important missions than profit maximization. The GSES sole function is to help make home possible on behalf of hard working American Families and most people in the federal government, from Congress to the POTUS and his administration feel the same way.

The magical charter you keep referring to will not save you.

The twins role in American Society is an important one.

The litigation will go away

When? Before or after they are organically recapitalized?