Fannie Mae-No Politics (FNMA)

[ThePennyDoctor]

You are assuming the wind-down goes through; no one really thinks that will happen. When the government asked all interested parties for feedback on a wind-down plan, they all unanimously said it would be a disaster and begged the government not to go through with it. These stakeholders included America's largest banks and construction companies; FNMA and FMCC will never go away - the system can't survive without them. The Government can't publicly admit this, but everyone knows it. Doesn't mean the old commons will get anything, but if these companies are IPO'd out as the hedge funds originally proposed, after paying off the old creditors, there would be something left (otherwise the hedge funds would not invest).