Replies to post #744735 on Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi No Name

Any thoughts about CFR 31 902.2?

Section 902.2 of title 31 of the Code of Federal Regulations sets forth standards for the “compromise of debts” by the Administration. On the basis of its review of those standards, CBO believes that a reduction in the value of the Treasury’s preferred shares could be undertaken as part of the recapitalization of the GSEs.

As you know this restructuring will not be governed by the US Bankruptcy Code, State Insolvency laws or FDIC guidance. Dont think you have dealt with USG accounting and compromise of debt issues before? - have you?

[Louie_Louie]

Wow! That would be great IF conservatorship was spelt r e s t r u c t u r e.
Also keep in mind, many like myself have been in this Conservatorship for 14+ years, so many here are just as much a pro as yourself. Now, if ya wanna really talk bankruptcy/restructure then I assume this is not the place, sorry. Every quarter capital is added, so what will the story be at the end of 2024 when we are at 150 billion? 160 billion? More? Still restructuring? Lol don't think so.

The companies operate much differently than they used to and will keep changing the way they operate due to HERA, so it looks like restructure every 4 years a new admin gets elected, or whenever the wind blows a new FHFA head in the door. The restructure of operations here is a joke mostly, but I wouldn't say the same about billions going towards recapitalization.

Also....no one has explained how capital structure matters IN CONSERVATORSHIP. Here's a giant hint, it doesn't. Will it after release? Maybe, but by then commons will be at $10+ just based on release.

[EternalPatience]

That does sound like Bradford