Fannie Mae-No Politics (FNMA)

[JusticeWillWin]

PURE THEFT:

Fannie Mae’s situation was totally different. In the winter of 2000, it had agreed with Treasury, and pledged publicly, to maintain sufficient liquidity to enable it to survive at least three months without access to the debt markets. As a consequence of this pledge—to which it had adhered—unlike all of the other companies rescued by the Fed or the Treasury during the crisis, Fannie Mae never experienced a threat to its solvency because of difficulty rolling over its maturing debt, nor did it need to sell assets at depressed prices to survive. The company never experienced a market crisis. At the time it was put into conservatorship, Fannie Mae’s capital significantly exceeded its regulatory minimum. Fannie Mae’s “rescue” was a policy choice by Treasury, with its timing determined by Paulson.