Replies to post #6892 on Fannie Mae Preferred S (FNMAS)

[44centsAKAchoccake]

Luckily, they can just restore our dividends well before any recapitalization, in fact restoration would help make a credible financial case for recapitalization by investors.


"“I’m not sure those investments are being made on the basis of business fundamentals,” Mayopoulos said in the interview, which airs in full April 14 on “Capitol Gains.” “There might be bets on really what people think the political outcome is going to be.”"

"Under the terms of an agreement with Treasury that went into effect this year, Fannie Mae (FNMA) will be allowed to retain only $3 billion in net worth. Any profits beyond that amount will go to taxpayers."

"“The company hasn’t been capitalized,” Mayopoulos said. “So whatever the future of housing finance is going to be, there are still some major issues to be decided.”"

[camaro4me]

That doesn't sound good.