Fannie Mae Preferred S (FNMAS)

[rosen62]

He actually IS saying that. He currently says -have to find the statement- that both companies rely on the Treasury's commitment to stay afloat. Which is technically true. This is why Perry's lawsuit is of critical importance.

As for why DeMarco is not ending the conservatorship? First, because of the above. He can't. But everyday I am more convinced that he does not want to. That he is entangled in politics and has fallen for the game. So he relies on Congress for reform to avoid going back in time. Perhaps, DeMarco wants some kind of outcome that includes receivership as a continuation of the conservatorship.

An alternative interpretation could be that he is simply trying to extend conservatorship as much as possible as it acts as a shield for the companies. Conservatorship is what protects them from Congress, unless Congress acts. HERA 08 left Congress out. So DeMarco stays put and tells Congress that the ball is in their field knowing that there won't be any new law signed anytime soon. Thus, HERA stays.