Replies to post #457146 on Fannie Mae-No Politics (FNMA)

[contrarian bull]

F&F can build reserves easier than that. No need to end the NWS - in fact the NWS is our friend here.

Just increase the allowed reserves just like they did in December, but this time to say $100 Billion, and don't increase the liquidation value of the Senior Preferred at the same time.

NWS will effectively be ENDED until they earn and retain $100 Billion.

Treasury comes out fine - the increased net worth will be reflected in the stock price - so with the warrants Treasury gets 80% of it anyway. And this is better than repealing the NWS and going back to 10% because until the reserves are fully built up dividends to Treasury are zero.

Just a single letter from treasury could do it. Oh, so easy.

I believe GOV can allow total build up of reserves with all profit by delaying or killing the NWS or 10%