Fannie Mae Preferred S (FNMAS)

[44centsAKAchoccake]

He doesn't have the authority to recapitalize FnF ala Millstein. Maybe he does have the authority, but he has been interpreting his statutory authority rather narrowly. Fair enough, he's an Acting Director.

Conservatorship won't end until FnF have $200 b of book common equity or so. At a minimum, the FHFA/Tsy agreement would have to be amended again. Then new capital would need to be raised.

Could happen once net investment is down to zero, maybe later this year. Probably will happen in next two or three if not sooner.