Replies to post #7803 on Fannie Mae Preferred S (FNMAS)

[raindancer1]

I dont think ending conservatorship requires congressional approval. I dont recall that being the case with aig. Congress has no say in ending conservatorship or the trsy selling their warrants etc. If congress currently controled fnf why would thry have included trsy cant sell their shares in the jumpstart gse reform bill? Any thoughts?

Im probably missing something with demarco and maybe im being ignorant...but the way I see it at the moment anways, if the republicans support him, there is a reason for me as a shareholder of fnf not want him at the helm...whats really going on behind closed doors?

[stockanalyze]

i believe he has authority..demarco has accomplished what the congress could not do. he can even overhaul postal service.

[44centsAKAchoccake]

He doesn't have the authority to recapitalize FnF ala Millstein. Maybe he does have the authority, but he has been interpreting his statutory authority rather narrowly. Fair enough, he's an Acting Director.

Conservatorship won't end until FnF have $200 b of book common equity or so. At a minimum, the FHFA/Tsy agreement would have to be amended again. Then new capital would need to be raised.

Could happen once net investment is down to zero, maybe later this year. Probably will happen in next two or three if not sooner.