Replies to post #14367 on Fannie Mae Preferred S (FNMAS)

[JosephS]

Plus the fact that the executive branch(Treasury) has imposed a "winddown" of the portfolio, aka liquidation. Congress didn't oppose it. I am not saying that it is legal or illegal, just that they were/are doing it to dome degree.

It could be "wound down" without r-ship. Not legal in my opinion, but people do illegal things all the time.

I think the only legal way to do it is thru r-ship. That would be devastating to housing(25% of the u.s, economy) and hence will not happen. It would be Lehman times 10.....

Again, I know we all know this stuff, just re-stating.

[Zargis]

Paulson is old news. Anyway, you're right about profits not being the issue and solvency being so. My apologies I was a bit messed up yesterday or whenever I posted that.

You have to understand though, with the third amendment in place - and ever since mid 2012, the agencies have been becoming solvent. The treasury hasn't been giving any draws for about a year now so far as I'm aware.

The treasury draws serenityfire only required when the companies had no profit or negative quarters. That has not been the case in a while and it is not due to the third amendment.

-z