Replies to post #741207 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

The administration - WH or Treasury may not be able to do 100% of a release

For example they can not create equity - private - federal utilities. Clearly that type of huge change - new purpose - requires Congress

Yet - hard for me to believe that the WH or Treasury ---- using parts of HERA and the specifics of the Senior Paper agreement --- can not declare it paid in full

That action would move our price up 10x ---- and then catch the attention of congress

all IMO but I feel comfortable in saying that (best I understand - the NWS change did not go by Congress as an example? )

[skeptic7]

That's where you're wrong. Congressional intervention is not needed to end the c-ship. It's just the "go to" position....

[EternalPatience]

Let some one with the powers (be it at white house or treasury or even FHFA), utter the word 1) fannie 2) Freddie 3) GSE first

then we can hope for a sentence with the words
1) Exit 2) Cship 3) Reformed etc


then we can think of release and 2024 blah blah...

Right now, the first set of 3 words have not been uttered by Wh and TSY secretary at all in the last 2 years... Just those 3 words

[LuLeVan]

Congressional approval is not required for recap/release. A letter agreement between FHFA and Treasury is sufficient. Therefore, Biden can still get the up to $100 billion out of FnF in his lame duck period (via warrants execution and/or SPS conversion).