Replies to post #530850 on Fannie Mae-No Politics (FNMA)

[401kobessive]

If I was the Ceo thats what I would do...sell off a small % of the assets and have a 5% capital buffer.
The sell off would most likely be tax free under the conservertorship.

[Donotunderstand]

their holdings (mortgages) are also lent out - they are not without obligation - the MBS paper they issue

that is my understanding


F and F take in for example 100B of mortgages and then sell 100B of paper


so where is the clean asset to sell ?