Fannie Mae CEO Daniel Mudd recently provided a grim assessment of the effect that a “literal reading” of the Senate GSE reform bill would have on Fannie’s retained portfolio, claiming the company might have to reduce its retained mortgage holdings to as little as $10 billion, an enormous drop from its current $730 billion or its peak of $913 billion registered in October of 2004. However, in a recent analysis, Bank of America equity analyst Robert Lacoursiere said a portfolio cut of the magnitude suggested by Mudd “is very unlikely” ...