Fannie Mae-No Politics (FNMA)

[malebaboon]

Obit - Zandi's view is concerning from a shareholder perspective and even bizarre in that he suggests the government arbitrarily put F&F into receivership, strip them of assets, and then sell them back to F&F. WTF? I don't really see where such a move could ever be considered lawful. If that's not seizure of private property, I don't know what is.

Your take on this, please? :

The transition must also resolve the fate of Fannie Mae and Freddie Mac. While few wish to return to the old system, which was dominated by these thinly capitalized, too-big-to-fail behemoths, the consensus stops there. A desirable approach would be for the government to put Fannie and Freddie into receivership, and to strip them of their key assets. They would then be re-chartered as new private mortgage guarantors, able to license back these assets from the government receiver. Their operations would not be disrupted, ensuring that the mortgage market functioned smoothly through the transition. But to level the competitive playing field, any other new guarantors could also license the same key assets from the receiver. This would facilitate easy entry into the guarantor market and thus competition. http://www.banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=e11b481b-1c9f-49f8-acd5-b062387038a7