Replies to post #246 on Fannie Mae Preferred S (FNMAS)

[Joe Stocks]

I was just thinking. With the Treasury collecting all profits we will never have shareholder equity. If the current administration allowed us to keep all profits after paying out the gov't we would start to build shareholder equity and that would make it very difficult for them to take those accumulated profits away. No equity, no harm if they close us down.

I wonder if Geithner could be charged with misfeasance of public office for abuse of power? C-ship is designed to protect the assets of the corporation. By the conservator being required to turn over all profits from OUR company by the Secretary of the Treasury to give to the Federal government certainly seems like abuse of power to me.

[CatBirdSeat]

Fourcentson1dollar, I totally agree, the Aug. 17th move was completely political, and that's it.

Joe, I really think at the end of the day, Obama or Romney will likely do just about the same thing regarding final resolution of the GSE conservatorship. If Romney is elected, he will likely follow through with something like the Millstein plan. If Obama is re-elected, he will likely follow through with something like the Millstein plan.

The GSEs are pillars of the housing system, and the model works, having the government lending a hand, with the private sector providing the things that government can't do.

Remember what Reagan once said, "Governments tend to not solve problems, only re-arrange them".
So they won't change something that has worked for many years, just re-arrange (i.e. reform).