Replies to post #225370 on Fannie Mae-No Politics (FNMA)

[big-yank]

The Federal government has no stake in AIG's activities or liabilities in the future. However, they have extended guarantees on approximately $5.5 trillion in MBS at FNMA and FMCC. Said another way, the risk to the government remains significant at Fannie and the government has no further risk on AIG.

The government has not exercised its warrants and, so, does not own any shares in FNMA at the present. They have the option of purchasing those shares, as they wish, when they wish. The purchase price is so low as to be unimportant.

I believe that FNMA and FMCC have been treated fairly by the government and that the conservatorship might have already been retired if the shareholder suits had not cluttered the process with confusion and threats to the government's position.