Replies to post #452451 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Judges may ask extra $190B+ beyond 10% apply towards principle

Assuming Pollock's numbers are to be believed, and they're at least in the ballpark, Treasury's IRR on Fannie is 10.04%. That means that there is basically nothing that has been paid beyond the 10%. In other words, if the NWS had never happened, Fannie would right now have the same capital they do in the real world, except that the senior prefs would be paid off.

Freddie is farther ahead on IRR but not by a whole lot. They might have had ~$10B extra without the NWS, and of course the seniors would be gone.