Fannie Mae-No Politics (FNMA)

[kthomp19]

1. At what point do short traders have to put aside money to pay their share of the Lamberth ruling? FNMA already put it on their annual report, but I wonder if/when others have to do it and how much it would be.

The money isn't paid until the judgment is final, which is after all appeals have been exhausted. If neither side appeals that will be relatively soon, but if either side does then that date is probably 1-2 years from now.

2. What happens if the government is found to have actually nationalized FnF? Wouldn't the $8 trillion FnF debt have to show up on the federal debt and cause the US gov credit rating to go down and interest rates to go up? Are fed bondholders also getting a raw deal by having this debt kept off the fed books?

1) No court has been asked to rule that FnF have been nationalized, so I don't expect such a finding to happen.
2) Treasury has cited SFFAS No. 47, part 42, as its justification for not consolidating FnF's balance sheets onto the government's. That part of SFFAS No. 47 says that since conservatorship is temporary (yes, I know that's laughable) then FnF are not Consolidation Entities.