Replies to post #362 on Fannie Mae Preferred S (FNMAS)

[CatBirdSeat]

In the 2009 paper 4 options were listed,

- Return Fannie Mae and Freddie Mac to their stockholders with little or no change to their congressional charters;

- Eliminate their GSE status and convert Fannie Mae and Freddie Mac into private corporations;

- Eliminate their GSE status and convert Fannie Mae and Freddie Mac into a government agency; or

- Make supplementary changes to support the secondary mortgage market such as providing government reinsurance of MBS or encouraging the use of covered bonds.

Points 2 and 4 is essentially the Millstein plan.

[CatBirdSeat]

I think it is also what Romney is talking about. Obama probably has the same thing in mind too, he's just trying to ignore the topic until after the election, I guess.