Fannie Mae (FNMA)

[955]

Q: “What company requires 116B (sic) of a bailout but then pays it back in full within a 2 year period of ‘returning; to profitability?”

A: "One that non-cash based accounting gimmicks made it seem like it needed in the first place; in terms of operations and cash, it needed nothing."

In other words, these accounting gimmicks would made it seem that HERA conservatorship criteria had been met, but it looks like, if the authors are right, none of them were.

In fact, they argue quite compellingly that the Treasury could have provided GSEs with line of credit and they never would have had to borrow a penny.

President Bush despised the GSEs (as did HP & TG) and they wanted GSE balance sheets to help TBTF banks and support housing.