Replies to post #412003 on Fannie Mae-No Politics (FNMA)

[HappyAlways]

Hope that Mnuchin will say something positive tomorrow and better with a time-frame. At least, all have stopped calling for FnF to wind down.

Just not sure why Congress still have concerns for the recap and release. In the hearing with Mel, stockholder is not mentioned at all. And, all senators do not seem to care that FnF are private companies. May be, they would like to take some advantages before letting go. We still have the court cases moving. NWS is clearly unconstitutional.

[Sogo]

If Watt discussed capital buffer with Mnuchin, wouldn't that suggest that Mnuchin is at the very least ok with strengthening the GSEs before Jan '18 comes?

And maybe Mnuchin really does want to leave the question of housing finance reform to congress. But i think his willingness to strengthen the GSEs against their impending zero cap date shows that he is giving the GSEs a chance at surviving into and perhaps even through any congressional legislative reform efforts that might come. And if the notion that congress will still take years to pass reform holds, then the GSEs being better capitalized through that process has to give them at least a slightly better chance of surviving legislative reform. But then, the TBTF-owned congress will do whatever it wants. The Only check to that is possibly executive and judicial branches.