Replies to post #748121 on Fannie Mae-No Politics (FNMA)

[EternalPatience]

Here is how it works


FHFA says - Cong has to act. TSY has to decide on agreements
TSY says -- Cong has to come up with new legislation.. FHFA owns the capital risk definition
Cong - Never mind.. they keep changing every 2 years and every 2 years a new committee is formed, which will bring the FHFA head to the hearing and ask, what are you doing about exit... They speak about safety and soundness and if any tough questions come up, the FHFA head will say, we will get back to you on it and we will work with you through the process in complete cooperation (this answer applies for the new FHFA head swearing in hearing too-- NOD for everything cong says until appointed)

Rinse and repeat

[bradford86]

PERFORMANCE MEASURE 1 .3 .1:
Issue a proposed rule on Enterprise
disclosures under the Enterprise
Regulatory Capital Framework
FHFA continues to focus on managing the ongoing conservatorships to preserve and conserve the assets of the Enterprises
for the benefit of the taxpayers, as well as reducing taxpayer risk from Enterprise operations. In FY 2022, FHFA monitored
two performance measures for Strategic Objective 1.3 and met the targets for both of these measures. The table below reports
progress on these measures.

PERFORMANCE MEASURE 1 .3 .2:
Issue a proposed rule on Enterprise
capital planning

https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FHFA-2022-PAR.pdf

for what it is worth, Sandra Thompson cannot end the conservatorships alone. Treasury's equity stake currently locks the capital structure, keeping the companies in conservatorship until it is resolved. Sandra Thompson works at FHFA, not Treasury.

There are two paths out of conservatorship:
1. Treasury
2. Congress.

One of them needs to act. My point is that I believe #2 will never act. That leaves #1.

Look, educating you has been fun and everything, but you really have all the pieces you need to understand what's going on. Try being less sad. There is a lot of opportunity here.