Fannie Mae-No Politics (FNMA)

[bmp152]

If they are released from conservatorship prior to reform, what grounds does Congress have to reform them post conservatorship? It seems that the only thing they could do would be to revoke their federal charters. By releasing them, the government gives up a lot of power.

I think the gov would be much happier if an injunctive decision was reached negating the "net worth sweep", as that would give them fodder for pleasing shareholders while still maintaining ultimate control. They still get 10% dividend, still hold 79.9% of common stock, and still can strong-arm the GSEs into reform (if it's tenable and actionable in Congress).

IMO...