Minyan Mailbag - FNM
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.
I could be way off base but hasn't the Bush Administration targeted Fannie Mae (FNM:NYSE) for several reasons. Some of those reasons have been beat to death by analysts, reporters, etc.
However, it occurred to me the other day that FNM is run by Mr. Franklin Raines. He and FNM have incredible political clout...including money and the house of cards to back them up.
If Bush is re-elected won't his administration (SEC) take a more measured (time) approach to having Mr. Raines (Democrats) removed from his/their positions.
However, if Bush is NOT re-elected won't they take the scorched earth approach to take out Mr. Raines and his buddies. Could this administration's goal (more than any other) be to remove a Democrat from the head position at FNM and replace him with a more friendly head (Republican)
What are your thoughts....and do you specifically have a thought to who is manipulating the stock in this environment.
I agree 100%. That is why I bought back some of the out of the money puts for cents that I sold for dollars (against higher strike and lower priced options). Either way the government must deal with this company...they have to.
But you are right. A democratic president (no influence) and a mad republican congress is the worst scenario for FNM politically (and that is what they are all about.
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