Fannie Mae-No Politics (FNMA)

[kthomp19]

So saying it's on the table to scare people is an act of redundancy and misleading when we all know it's an idle threat.

Conservatorship is essentially administrative bankruptcy, according to one of the writers of HERA and directors of the FHFA (i.e. someone who has far more knowledge about both than any of us here).

FnF being put into bankruptcy isn't a threat. It already happened 15 years ago.

The threat isn't them going into bankruptcy, it's what happens to shareholders when they finally come out.

There's numerous other factors why they'll never BK. The assumption of the GSE's debt, totally pissing off the countries who hold a ton of the GSE bonds/debt like China. The housing market would automatically lose the 30 year mortgage and banks would double interest rates on mortgages that would probably be 10 years or less.

All of this applies to liquidation and receivership, but not conservatorship/bankruptcy.

Judging by your comments here you don't seem to understand the difference between Chapter 7 and Chapter 11 bankruptcies.