Here's how I see it....
The govt wants an entity, other then taxpayers monies, to back the risk FnF assume when they purchase mortgages. The govt also wants FnF to pay for this. This is important because basically what that says is the govt wants FnF to "purchase insurance" other then taxpayers monies in the event of another housing/mortgage fiasco.
Why is this important?...If FnF are funding this, they will still be in business. The only thing that will change is now, the govt (taxpayers)will not be the ultimate backstop. CSS will be that backstop and FnF will fund it(buying additional insurance)
The selloff late today was a knee jerk response to the story leaking out. Shorts will use this story and push down to force panic sells. Down the first hour, from there I say we go up, closing above $1.60...
This is the start of the new FnF. It is not their end!
GLTA,
Chenzo
Market Data 
Markets 
AI
