Replies to post #355342 on Fannie Mae-No Politics (FNMA)

[navycmdr]

Obama says it is time to wind down Fannie and Freddie ...August 7, 2013

http://www.usatoday.com/story/news/politics/2013/08/06/obama-mortgage-reform-fannie-mae/2624767/

[rekcusdo]

First, to be clear, wind down is not the same as wind up. (Just wanna get that clear off the bat).

That being said, winding down is not technically outside of the permissive acts of a Conservator when "preserving and conserving" since winding down keeps the Conservatees in operation, but perhaps at a lesser level in order to prevent overexposure to the market that could bankrupt them. So, simply saying "We will wind down" does not go against the preserve and conserve mandate.

Winding Up would go against the preserve and conserve mandate, however...as that would put the Conservatee out of business and they would cease to operate.

And THAT being said, the action that goes against the preserve and conserve mandate is specifically the NWS because it doesn't allow the GSEs to operate at their full potential and goes against the original 2008 contract that put the organization into Conservatorship in the first place.

[Donotunderstand]

I chime in

BO from the git go felt there needed to be a totally private solution (irony of one called a socialist)

As such GSE types were off the table

What would replace F and F and who would own and capitalize it and what would be the rules of the game have paralyzed all proposals

At this point - I am upset that BO has not reached the conclusion that F and F alone or with more private companies is the answer and its time to give the company back to its shareholders

Those hear for a while may recall my plan

Sr paper is wiped out for payments made - bye bye
Warrants are exercised for 79.9% of the stock.
All of that stock does dilute us
However - in my world view - such new shares would be sold to the public and ALL proceeds would go to the capital reserve of the new private F and F
Thus if the shares were sold at 20-25 dollars a piece that would be the value overnight of the shares we hold as the new company would have nearly 100B of new capital equity