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How much of a sigh of relief will hedge funds be breathing today Jessie and what's the path forward well look it's an important step for the hedge funds because as long as what's known as the net worth sweep was in place they were never going to get their hands on the money that was the prop the massive billions of dollars in profits that Fannie and Freddie were make making that's all been required to go to the Treasury every quarterly profit those companies make since 2012 they've been required to send that money to the Treasury hedge funds understand that these companies need more capital there and know their current state they're in no position to be able to endure losses, but the hedge funds would like some of the company's profits their argument being that we are big shareholders in these companies we should be getting the dividends not the US government Jesse we're almost a year away from the election how much of the change in the structure of these businesses will happen by then and will the Democrats treat them differently Democrats will absolutely treat them differently I mean you know take Fannie and Freddie out of if it's hard to see Elizabeth Warren or possibly probably even Joe Biden wanting to pursue a policy that enriches hedge funds you sometimes think with lizard you know she would intentionally do anything to not enrich hedge funds that aside Democrats think that these companies should have strong affordable housing mandates they should be helping lower income borrowers get homes the treasure the current Mnuchin Treasury Department's say there they're not opposed to that, but they're not as vocal in sort of pushing that as a motive whether they whether Mnuchin and mark Calabria at the FIFA can actually get these companies out of federal control by the November 20, 2009, likely I think you know Steve Mnuchin would tell you himself that it's pretty unlikely there's so much that really has to happen besides allowing them to build up their capital buffers to get to that point, so I spoke with the FIFA director mark Calabria earlier this month Jesse and asked him about why and Fannie and Freddie would need to raise private capital let's have a listen to his answer the first thing I think we need to do is start to retain capital and I think we'll have to have a number of months of retaining earnings so six months to a year of retainer needs to show that track record and the build of that cushion before they can go to market so again emphasizing process-driven not calendar driven I think the earliest you could see going the market would be the lat fourth-quarter 2020 but 2021 is more likely the case, but I really do want to emphasize a lot of things need to be done before you can get to that point, so it sounds like we still have a long ways to go Jesse maybe even you know 2021 before this private capital raised dick Beauties today sort of throwing water on the whole thing and saying common shares are quote impossible to value well I...
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