Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

"The only reason they remain in conservatorship is that neither Congress nor any administration has made it a priority to confront and resolve two policy decisions made over a decade ago—agreeing with what I call the Financial Establishment that Fannie and Freddie must hold 4 percent-plus “bank-like” capital irrespective of the risks of the mortgages they guarantee, and the August 17, 2012 agreement between Treasury and the Federal Housing Finance Agency (FHFA) to change the dividend on the companies’ Treasury senior preferred stock from 10 percent per year to “an amount equal to the incremental increase in [their] net worth during the immediately prior fiscal quarter,” known as the net worth sweep."