Comment

I would suggest starting at 2 percent  capital ratio and moving the goal up to 4 percent over a 10 year period.  The best way to raise capital is through the sale of common stock because it is a clean cash raise and requires no on going cash payments off the balance sheet. Dividends can be considered at a later date along with additional capital raises that would not excessively dilute the common stock. I would IMMEDIATELY cancel the Treasury warrant that allows for the taking of 79.9 percent of the common stock.  It makes no sense to dilute the common stock 400 per cent and then go to the public and ask them to invest in the common stock.   The message to your future investors  is all wrong especially knowing that the Congress of the United States laid the foundation for the financial collapse of 2008  by pushing their affordable housing agenda on Fannie and Freddie (think Barney Frank) only to have these entities eliminate good underwriting standards for the mortgage paper they accepted.  It is immoral for the treasury to take 80 per cent of the common stock.  The common stock holders were not responsible for the financial collapse in 2007-08.  The dumb Fannie Mae management and certain dumb members of Congress were responsible along with the banks that took advantage of the absurd policy of the GSE's accepting mortgages that were poorly underwritten. The banks rang the register with each foul mortgage they created and Fannie and Freddie got the liability....truly stupid policy!  A lot of these congressmen and senators took cash gifts from Fannie for their reelection campaigns.  So,  it's time to come clean...no more bad policy by government.   Good underwriting standards and good management will result in a strong Fannie Mae with the ability to support the lower and middle income housing needs of  American families.