FNMFO - A December To Remember: GSE Big Bang PSPA Amendment

• Fannie and Freddie's critics seem to incorrectly think that Fannie and Freddie need to raise money and exit conservatorship before inauguration or Biden will nationalize them.
• Fannie and Freddie's equity will be restructured and then they will be put on the path to eventually exit conservatorship via consent decree which will involve massive capital raises.
• Mark Calabria will likely ignore Maxine Waters' request because her request is contrary to his statutory obligation in his own words as director of FHFA to end the conservatorships.
• The next two weeks are prime time for the big time PSPA amendment that restructures the equity so that Fannie and Freddie can begin raising capital next year.
• There are SCOTUS oral arguments for the Collins case this Wednesday December 9. Some people think that the PSPA amendment may happen before then. I am not sure about that.

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