Fannie Mae-No Politics (FNMA)

[mikar]

The main issue facing Fannie is not the Corker bill or the Reed bill. The outcome of these are years away.
The real issue now is whether Fannie should come out of conservatorship.
That should happen when a company is in " a sound and solvent condition." Which Fannie and Freddie now are.
But the amendment of Aug. 2012 make it impossible for FnF to do so.
The basis of Ralph Nader's lawsuit is that the FHFA had a fiduciary responsibility to the shareholders. The right and legal move would to let them come out of conservatorship now that the companies are solvent. If the gov't doesn't let this happen, the law suit will proceed, probably, this year. Nader's case is a strong one, many lawyers have said.
Restructuring of Fannie and Freddie should come after they have been released from conservatorship and recapitalized.
It would be a major mistake for the Gov't to take a hard line position against them