Replies to post #2792 on Fannie Mae Preferred S (FNMAS)

[betahighlander]

We just do not know what Lew will want to do. I agree as a budget guy he will see the GSE as a potential source of revenue.
on the positive sided for G-fees just allowing the G-fee to go up will send more money directly to TSY due to the Sweep. They do not have to pass a bill or anything.
I am thinking a planned increase in the G-fee- 2 basis point a month for 12 months would allow the Budget office to project these as a revenue sweep, into their budget.
Allowing the dfd tax asset would allow $$$ straight to the Budget office- again no new laws required.

I always felt Geitner would oppose selling the sr pfd debt to public at say 3% because it would interfere/compete with QE.

this may not be so with Lew.

I would think Lew would be concerned about R-ship scenarios as this would have to hurt the budget. NO G-fee for Ten years, would have to dig into the budget.