Replies to post #508314 on Fannie Mae-No Politics (FNMA)

[HoldenWalker99]

It's a good post because it includes citations from the law supporting all of his points... compared to your reply which is just more opinion on what you want to happen.

[HoldenWalker99]

I can tell that you're frustrated. You've made more than 100% on your common play. Sell and buy preferred and ride out the rest of reform with a winner. You're going to kick yourself when common end up around $2-3.

[kthomp19]

The unmistakable truth is that FHFA abided critical under-capitalization for 10 years but, suddenly now, a provision in HERA requires properly defined "core capital" to be present?

The justification for each FHFA director to not set capital standards has been that the companies are in conservatorship. This would all go out the window once the companies are released.

Calabria also seems much more willing than his predecessors to actually fulfill all his obligations under HERA. HERA is his baby; he has said many times that he helped draft it and that any time he does something, he will look at the statute first.

Short version: I believe all other FHFA directors have been violating HERA by not setting binding capital standards, and that Calabria will not continue that trend.

[Guido2]

It's a great post because others have consumed antidote to the Moelis Kool-Aid. They need to stand together and be cheerleaders to each other's posts.

[Donotunderstand]

that may be 4617 (f)