Replies to post #629309 on Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Good point! He is technically THE CZAR over the GSES' (currently unremovable by POTUS) and can pretty much do how he sees fit!

But, given the WH/UST housing plan from last September, I think he decided to "level the playing field", by unnecessarily over capitalizing them, in anticipation for them to eventually compete with the tbtf banks and other financial intermediaries, in the Multiple guarantee MBS world envisioned by the plan.

Fortunately MANY commentators have pointed out the numerous NEGATIVE CONSEQUENCES associated with an over capitalization regime (including reduced ROE for shareholders!)

Everyone should comment, IT'S FREE and the worst thing he can do is totally ignore it!