Replies to post #640372 on Fannie Mae-No Politics (FNMA)

[TRCPA]

That sounds very reasonable. Perhaps they test the waters at the $70 billion point with an attempt at an initial capital raise, as you suggest.

Maybe not for the full amount, but with say, a $30 billion PO. Then continue retaining earnings at hopefully the current pace of almost $7 billion/qtr for a while. And then after a couple more years, another capital raise.

With Sheila Bair as Chairman, I believe there will be a smart, effective plan put in place
(for FNMA) like this that will be reasonable, with a goal of full capitalization by about 2024. The advance consent decree will give the GSE's room and time to get there.