Comment

The capital standards must be adequate, reasonable and as close as possible to a real scenario that can happen or NOT. Nobody knows when will be necessary this capital or if it will be necessary. But I think we should also find a way for the banks, which finally grant the mortgages, not to commit fraud against F & F. We have all witnessed the agreements and payments made by the banks to GSE for the toxic mortgage securities sold to F & F. We have recently witnessed an open criminal investigation into whether traders manipulated market prices of $ 550 billion for unsecured bonds issued by Fannie Mae and Freddie Mac (https://www.bloomberg.com/ news / articles / 2018-06-01 / trading-in-fannie-freddie-bonds-is-said-to-be-probed-by-us). Someone think it would be fair for the shareholders of F & F and its companies to demand high capitalization standards in the event that the GSE environment commits fraud again? I don't think so!
Regarding the issue of recapitalization, I agree with the previous comments in which they say that the third amendment does not help the gse obtain an adequate level of capital to face future crises, I would only understand this third amendment as the way to "suspend" contracts with JPS, cancel their payments, be able to return more quickly the capital loaned by the treasury and allow f & f to recapitalize more quickly. but in this, nothing has been clear and even the treasury secretary has said that the funds contributed by F & F have been used for very different uses.