Gross, Greenspan and others are pushing Paulson very hard. However, Paulson will not budge. He will be still Treasury secretary till end of year. And new President will have new political agenda, which will determine the fate of FNM and FRE. However, either McCain or Obama will have similar policy to maintain FNM and FRE, mainly because these are semi-governmental, semi-private institutions, which are politically correct either way.
Here's what I don't understand. The major Hedge that shorted Fannie would have sold at a pretty high price..at the current price of FNM, there isn't much down side..why wouldn't they just cover, that buy back in ... put some postive spin and let the stock run up..which will give them more upside..