Replies to post #666498 on Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

I hear you! Post Collins, I am sure the FA'S, may have something in mind! I am pretty sure YELLEN doesn't have any skin in the game or an axe to grind with the gses, but is cognizant that well capitalized gses, can do two important things: (1) help investment in LIHTC and other Biden agendas and (2) Assist in the somewhat elusive goal of the Federal Reserve to attempt to have a say over long term interest rates via gses MBS sales and purchases (doing what UST CAN to provide the market with a clear signal that the gses WILL have Governmental support AND show a commitment to helping capitalize the 1st Loss Private Capital position). SO LONG AS THE EXECUTIVE BRANCH OF THE GOVERNMENT WANTS TO HELP AND NOT HINDER FINISHING THE LAST UNFINISHED BUSINESS OF THE GFC, SHE CAN DO MANY THINGS TO HELP! We will have to see if the Executive branch wants to continue fighting tooth and nail on its anti-HERA position OR WILL THEY BE INTERESTED IN RIGHTING THE SHIP AS THEY SHOULD HAVE 12.5 YEARS AGO! Stay tuned!

[HappyAlways]

3 levers are actually one. If PSPA loans are declared fully settled, there’s no more dividend payments and warrants are invalid. Only remaining problem is to meet the capital requirement. We can either wait for the profit accumulation or by issuing new shares. It is not that pessimistic to me.