Fannie Mae-No Politics (FNMA)

[Mathan22]

Thank you for the post obiterdictum. I have been following this board for a very long time and have always appreciated your input and feedback you have provided.

I am not privy to all the details of this matter. However, on looking at this on a macro level it appears that the US Treasury is offering up stock for Waterstone to use as capital in it's investment strategies...is this correct? Honest Question.

It was disclosed at the end of last week that Waterstone's largest or larger position has been the shorting of Fannie Mae.

With that in mind, wouldn't it be unethical for the US Treasury to give Waterstone an "Amended TARP (bailout)" and allow the institution to short Fannie Mae fully knowing that Fannie Mae is sending the US Treasury all of its profit's and is in conservatorship?

I would imagine there would need to be some oversight as how Waterstone was investing it's money. If it needs a baiout, then it surely shouldn't be using that capital to short a company that is providing income to the company whose capital is being lent.