Fannie Mae Preferred S (FNMAS)

[JosephS]

The 52-page pitch shows Blackstone bidding to advise the Treasury on how best to dispose of its stakes in Fannie and Freddie. Blackstone and Skadden noted Fannie and Freddie's financial performance was improving and that its loss reserves were stabilizing. Much of the pitch was devoted to describing the group's qualifications as a potential adviser to the Treasury Department.

I should have said: It shows that the loan loss reserves had stabilized. Of course, we knew that they would be reversed since they were so woefully over-reserved. If we knew it, they did......