Fannie Mae-No Politics (FNMA)

[rosen62]

Obit, your thoughts please.

So if c-ship ends, does FHFA become the permanent regulator of the GSEs with just the mission to regulate the entities? Will parts of HERA continue after the conservatorship ends? What will be the power of the future head of FHFA over Fannie and Freddie post-conservatorship?

Say, Fannie and Freddie aren't in conservatorship anymore and Watt becomes the regulator. Then he has to deal with two private entities. Treasury exercises its warrants and the government becomes the majority stakeholder. But later on Treasury changes hand for Republicans. Being the largest shareholder with majority voting rights how much influence could Watt enforce unto a Rep. Treasury?

Something looks wrong in the above *politicized* picture (for democrats).

Assumptions...

The strong push to get Watt in there must be to make sure:

* conservatorship never ends (unless for a court order).
* warrants, if exercised, are fully sold within Obama's term. Tsy not a shareholder anymore. Alleviates risk of a Rep. Treasury influence.
* warrants not exercised and disposed to prevent a future scenario where Reps could have their say via a Treasury shareholder.