Fannie Mae-No Politics (FNMA)

[GreenWizard]

****IMF NEWS*****

IN CASE YOU MISSED IT #1: During the Senate Banking Committee markup on the Johnson-Crapo GSE reform bill this week, Sen. Mark Warner, D-VA, warned lawmakers voting against the bill that when Fannie Mae or Freddie Mac start losing money again and costing the government billions, it will be their fault. At least that was one reporter’s take on the situation. Losing money again? Does Warner know something the rest of the industry doesn’t know? How can they not make money? Their cost of funds is next to zero and the assets they slap their guarantee on are close to flawless. And wait a second, isn’t Warner from Virginia where a little ole GSE called Freddie Mac is headquartered and employs thousands? Aren’t those employees considered his constituents? Then again, I guess Fannie and Freddie could start losing money again if they screw up a hedge or the housing market tanks. It’s possible, but so are the chances of the Mets or Marlins winning the World Series this year.