Fannie Mae-No Politics (FNMA)

[DaJester]

1) Treasury needs an incentive to allow FnF to be released
2) Treasury believes just writing off the seniors is illegal
3) Treasury believes just writing off the seniors would cause undesirable political blowback

1.) The incentive will be to stay on the right side of the law, which they've been precariously over the line for a while now. There is no such thing as a permanent conservatorship and sweeping profits of a private company forever. That would be a Taking, and they would run the risk of having to pay a LOT more than the $600M chump change. There's momentum on pulling back on these Agencies acting like the 4th Branch and being isolated from accountability. Are they going to want to stay in the spotlight as it intensifies?

2.) Sounds like a red herring to me. Did anyone state a law that it violates? I don't think so... If they thought writing off the seniors was illegal, they'd probably think the dollar for dollar LP increase off the books is illegal also.

3.) Political blowback for sure, because what politician doesn't like a cash-cow? But the PEOPLE rule this country, and the laws should apply to everyone.