Maybe.
The big question between now and then will be whether they’ve cleaned up their books since being busted for sloppy bookkeeping — or are they hiding a mountain of trash in their portfolio?
The big moral hazard in Fannie/Freddie is that too many people think that the government backstops them, ie, they’re as good as FDIC-insured. They’re not. There is an assumption in the markets that the Congress would bail them out... but that is all it is... an assumption.
As a result, their bonds (mortgage-backed securities) in the market command a higher credit rating than what they might have if people treated them the same as say, Countrywide or WaMu.
That’s true...Fannie had problems before anything happend in the real estate market.
Their problems are bigger than that.