Fannie Mae-No Politics (FNMA)

[rocco2]

This still pisses me off...

On the morning of July 21, before the Eton Park meeting, Paulson had spoken to New York Times reporters and editors, according to his Treasury Department schedule. A Times article the next day said the Federal Reserve and the Office of the Comptroller of the Currency were inspecting Fannie and Freddie’s books and cited Paulson as saying he expected their examination would give a signal of confidence to the markets

.At the Eton Park meeting, he sent a different message, according to a fund manager who attended. Over sandwiches and pasta salad, he delivered that information to a group of men capable of profiting from any disclosure

Stock Wipeout….

Paulson explained that under this scenario, the common stock of the two government-sponsored enterprises, or GSEs, would be effectively wiped out. So too would the various classes of preferred stock, he said.

“If Hank Paulson’s book working notes—which surfaced during the AIG hearing and crowed over his “nationalization of Fannie and Freddie”– indicate that he and other federal officials publicly said one thing, but behind the scenes acted with intent to do something harmful and destruction, those could be an ugly set of court deliberations”

Lets get Ugly !!

http://www.bloomberg.com/news/2011-11-29/how-henry-paulson-gave-hedge-funds-advance-word-of-2008-fannie-mae-rescue.html