Replies to post #671410 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

With $180 billion equity FnF are sufficiently capitalized to withstand the worst scenarios in Basel III simulations.

So this huge (and exaggerated) capital buffer makes sure that the new investors who participate in the upcoming capital raise won't get wiped-out even under severe market stress.

Also subprime is gone forever - at least in housing. A subprime crisis like in 2008 therefore can't repeat.