Fannie Mae-No Politics (FNMA)

[jeddiemack]

Your comment...


jeddiemack, what appears to be missing are the billions in circular US Treasury draws used solely to pay dividends due to the US Treasury and those added to maintain a positive net worth at the end of a quarter to avoid receivership.

It would be nice to know briefly how you traced the use of Treasury draws taken at the end of a quarter in the amount equal to the reported GAAP negative net worth (no draw was taken if there was a positive net worth) to arrive at the differential distributions placed into the categories presented in the previous posts for Fannie and Freddie.


I included an estimated $30Billion of interest on the circular debt being put on these two as a result of the excess reserves and unnecessary shenanigans. (Yes Debt!)

These are cumulative figures... as most might have guessed had the government not imposed the write down of DTA's (for no reason other than stuffing them with cash to buy bad loans) and over reserving against losses and the mark to market BS of investments held to maturity. They'd really may not have needed any cash. Likely they would have weathered the storm without the extra "stuffing" but that would have let a good catastrophe go un Used.

But stuffing them with cash was all part of the plan to save Banking and blame it on Fannie and Freddie. The unsophisticated public heard the headlines put out by media types and went on down the yellow brick road.

If you think I am materially off... do your own math... I don't believe I am. The link you posted just shows what they did... but not WHY they did it.