Replies to post #793808 on Fannie Mae-No Politics (FNMA)

[The Man With No Name]

FnF's enormous regulatory capital holes cannot be filled unless the SPS are written down, converted to commons, or some combination of both.

Even with that happening, FnF would have to raise capital, and no capital raise is possible with the SPS overhang currently in place.

Exactly. I see no alternative to the example set in AIG.