Replies to post #411558 on Fannie Mae-No Politics (FNMA)

[matmlg]

Oh course. That is what I have been saying ever since Watt's testimony. He will not send all of this quarter's earnings to the treasury, but he will allow the companies to retain the earnings to build a capital buffer. He said that the buffer amount is TBD. I'm assuming that the treasury will determine the amount of the buffer. If the buffer amount exceed the total earnings for the last quarter then all of the earnings will be retained. If the buffer amount is less than the earnings from last quarter then the buffer amount will be retained and the remaining money will be sent to the treasury. Watt never said that they are going to stop the sweep. He said that they need a capital buffer to be able to withstand a quarterly loss, or to prepare for Trump's tax plan.

[lenscleaner]

Who is FHFA official Bob Ryan ? Any one care what he say any thing?

[3antar]

Obama speech in Arizona, did not sway us, why would this guy? Only issue we have it time.. we will prevail sooner or later

[Potty]

Sounds great for shareholders...

The drive to receivership is DONE

Hence the move to R&R is ON

Whole direction of policy is CHANGED

This was very very foundational move -- we have now gone 180 degrees IMHO

HUGE! as someone might say

[Donotunderstand]

sorry but I am in a disagreeable mood

that is not terrible

that comment was meant to put a FENCE around a super friendly action that I now feel more certain will happen

the non payment to Treasury of the NWS "obligation/dividend"

What this person who works with WATT said --- per my bias in reading is


With this suspension we do not intend to permanently change things - it is temporary - it is aimed on a slight build up of capital for very near term foreseeable avoidance of a draw on the GOV

delay --- still means no move of money and capital build up - how is that terrible?

goal is to allow holding enough capital to protect ..... --- how is that terrible ? Which long here wants a draw ?

the objective - goal - is not to (my added words) stop payments for so long and so much that we raise 50-100 Billion dollars and capitalize the entities beyond the amount they need for the more limited or "fenced in objectives"

anyone - did I misread ?
anyone - did I add a bias that misunderstands the super positive (yes limited but positive) impact of this sudden growth of balls by WATT as he sees real danger (for first time) of a DTA write down or a hiccup in the market causing the unthinkable which is the first draw to F and F in ages

>>>>>>>>>>>>>

very positive IMO

now we need Mnuchin to say at least the same and not say dumb ignorant things like F and F displace private LENDING?

[bcde]

This ia already stated official position by Mel Watt during Senate hearing.
What is new in this.