Replies to post #68555 on Fannie Mae-No Politics (FNMA)

[obiterdictum]

Pressure is growing. Think of this:

The 2014 United States House of Representatives elections will be held on November 4, 2014 for all 435 seats.

Elections for the United States Senate will be held on November 4, 2014 for 33 of the 100 seats in the Senate being contested.

The United States presidential election will be held on Tuesday, November 8, 2016.

Representatives, Senators and presidential Candidates will be getting ready for these elections starting...?

In addition to this, there is a lot of government business to tend to. So, GSE reform has to be tended to sooner than 2016 in anticipation of a new president.

Te Republican Party has always spilled the beans about what they want to do and it is not good for the common shareholders.

The Democrats have been less forthcoming.

The Administration sent out a white paper on GSE reform and that is the last word heard, Three options were presented. None of the three were favored. You can see the paper here:

http://www.treasury.gov/initiatives/Documents/Reforming%20America%27s%20Housing%20Finance%20Market.pdf

Then you have Maxine Waters and Jack Reed who both seem to favor restructuring and not elimination. There are no bills submitted by them yet.

That is all I know about the Democrats, however, restructuring implictly means to leave the conservatorship as a private company or as GSE as before but restructured in some manner.

I do not know if the Democrats want to keep the GSEs in conservatorship. I think they will first look to the Administration for the view they should take and those possible views are found in the white paper on pages 27-29.

That the GSEs are still in the conservatorship under a Democratic Administration that controls the US Treasury may be for tactical political reasons more than wanting them to remain there. It is to protect them from legislative dissolution and liquidation

That is what I was reporting.

Even so, both parties want them to be released to do different things to them.

Now if you were standing at the door of the conservatorship with your shares and/or mortgage in your hand and there was a Republican Rep and Senator and Democratic Rep and Senator in front of you, which two would you give the GSEs to after considering what has been said, written and done so far in the historical record?