First Fannie Mae would vote to create $100 billion in new equities – or $200 billion, or $800 billion – the number is truly immaterial, Whatever they want. Then the Fed steps in and transfers this equity to it’s own balance sheet and hands over whatever Fannie Mae (ie, Obama) wants to carry out this plan. We are playing Calvinball here – there are no rules as to what the Fed can put on its balance sheet, and no effective oversight, not even from Congress. (remember how much heat the proposal to audit the Fed caused?) The Fed can literally do whatever it wants, and the Fed can never go bankrupt because it has a license to print money. Or, as in this case, a license to add as many zeroes to the end of any digital bank account as it feels like adding. The Fed would be effectively transferring its license to print money over to Fannie Mae, freeing them up to pass out as much cash as their masters felt was politically useful. As I said previously, $100 billion, $200 billion, $800 billion, it doesn’t matter – the only limit on this plan is the wavering conscience of Ben Bernanke – the same Helicopter Ben who popularized the idea of dropping money out of Helicopters in order to fight deflation.