Fannie Mae, Freddie Mac: Secret Treasury Documents Leaked
The confidential treasury documents that were leaked by a firm representing Investors unite today shed more light on the fact that the treasury was well aware that Fannie and Freddie were becoming profitable as early as June 2011.I don’t believe for a minute the anonymous treasury spokesperson who tried to downplay the document by stating “As part of the policy making process, Treasury routinely engages with key stakeholders, market participants and consumer advocates. Treasury did not issue a Request for Proposals, and no contract was awarded.” This conflicts with the opening line in the document which states “We are pleased to have the opportunity to meet with the Department of the Treasury to discuss our qualifications and potential strategic alternatives regarding FNMA and FMCC”. If this truly was an unsolicited proposal wouldn’t they have said, We would be pleased to have the opportunity? By saying, “We are pleased to have the opportunity”they were obviously referring to a prior invitation.
For those of you new to the story, this is critical evidence because it completely contradicts the reason treasury claims it initiated the third-amendment sweep.
The confidential treasury documents that were leaked by a firm representing Investors unite today shed more light on the fact that the treasury was well aware that Fannie and Freddie were becoming profitable as early as June 2011.I don’t believe for a minute the anonymous treasury spokesperson who tried to downplay the document by stating “As part of the policy making process, Treasury routinely engages with key stakeholders, market participants and consumer advocates. Treasury did not issue a Request for Proposals, and no contract was awarded.” This conflicts with the opening line in the document which states “We are pleased to have the opportunity to meet with the Department of the Treasury to discuss our qualifications and potential strategic alternatives regarding FNMA and FMCC”. If this truly was an unsolicited proposal wouldn’t they have said, We would be pleased to have the opportunity? By saying, “We are pleased to have the opportunity”they were obviously referring to a prior invitation.
For those of you new to the story, this is critical evidence because it completely contradicts the reason treasury claims it initiated the third-amendment sweep.
I also have an article from CNN dated November 7, 2011 titled “Cost of Fannie & Freddie bailouts trimmed.” This article shows that they absorbed the data that was revealed in the secret treasury documents quite well when they stated-“FHFA’s report Thursday estimated that future profits by Fannie and Freddie will start to reduce the net costs of the bailouts starting in 2012 or 2013.” The last draw from the treasury was February 2012, the sweep was initiated in August of 2012. Could it be more obvious?
I want also to point out that after our blistering critique, Barrons removed the “Why Uncle Sam Won’t Free Fannie and Freddie Yet” article from their web site. Our “Rupert strikes again” post was on top of the google news search for Fannie Mae for a few days. We are obviously having an impact. Keep the Faith!
