Replies to post #622924 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

what has Treasury done aside from continue to fight court cases to higher and higher courts?

perfect

answer - nothing

raised capital F and F can keep but fully offset it with higher pay back obligation - just smoke and mirrors -- (although if (the now larger) SPS is forgiven it is a move to the good)

[FFFacts]

FFF, yes, that is a really big question -- why has nothing been done? Treasury could have rescinded NWS and agreed to pay back overpayment that would in effect have settled all the suits AT ANY TIME IN THE LAST FOUR YEARS (and Judge Sweeney has now sealed that it is all...)

Both parties, treasury and fhfa were waiting for courts to lead and the courts were waiting for fhfa/treasury to lead, so nothing happened.

The treasury and fhfa were possibly holding off on bad optics but the bigger issue is that there are still people in the admin that hate Fannie and Freddie and didn't want to release them. There is a lot of lobbying going on and unfortunately Fannie and Freddie are not allowed to lobby by law.

I think the fastest outcome to some sort of agreement/amendment is a trump loss and action taking place Nov-Jan. Otherwise, I believe they will wait on scotus and no action until then. trump is a great marketer and a pathological liar but don't underestimate how gullible the electorate is.

[TRCPA]

Potty....well stated. Agree completely.

[kthomp19]

But looking at it from the perspective you set-up, did the Trump administration even start the race let alone get to the finish line?

The administration has done far more than nothing, but far less than we have hoped.

1) Trump installed Calabria as the FHFA director. This is no small step, given Calabria's repeated statements that he is obligated by HERA to recap and release FnF. There is no way that Trump did not know about Calabria's mindset going in.
2) The presidential memo (which came out right around when Calabria was confirmed) and subsequent Treasury plan. Much later than expected, but significant nonetheless.
3) Last September's letter agreement effectively ended the NWS.

My only guess as to why they have not done more is that FnF are extremely sensitive political topics and that the administration is trying to preserve political capital for other purposes. There is little reason for them to take major steps before the election anyway, and the lame duck period (if applicable) is enough time to do what needs to be done.

The pref prices are bleeding lower, as I suspected, after the buying around SCOTUS taking case.

My opinion here is that the market is finding better perceived values elsewhere, but you are correct here.