Replies to post #400848 on Fannie Mae-No Politics (FNMA)

[TheDon3]

What would be the objective of it all though, either way they decide to do it? Either through drainage of capital or just shutting them down, what's the reasoning and logic of it all?

Either way you decide to shut them down, you'd still be leaving the billions of dollars more you could make off of the warrants on the table, so why if you're the government, would you leave those warrants? Lol why leave so much more money on the table?

If you eventually let Fannie and Freddie die via drainage of capital, then you'd lose that revenue stream but also the warrants...

If you let them build their capital...then you still eventually lose their revenue once they're freed of conservatorship but you still have the warrants so you'd make tons of billions more...if you choose to exercise them...

[Popeye9]

Fnf are still corporations if the gov drained all profits and retained earnings, they would still have to go through a bankruptcy process. If that happens the implicit guarantee from the company charter will no longer be valid, and the government will likely have to step in for all the outstanding fnf debts or credit ratings could drop on the debts. What would happen then? No one knows. It's a big uncertainty.

[Rk3]

At the time of the plotting of the diabolical Net Worth Sweep the end game may have been the gutting of and insane claims that F&F were just so weak they couldn't weather their Death Spiral. What a sick dimented bunch running the U.S. Government for all these years?

Could Trump and Mnuchin change up everything and publicly summon individually every representative and demand to know what have they personally done to address the blatant fraud perpetrated against F&F and ultimately every American citizen?

If that was even possible, that would send a massive shock wave throughout Washington!