Fannie Mae-No Politics (FNMA)

[Dollars1]

H, Table of contents from that Tim Howard brief ARGUMENT........................................................................................................... 7
I. THE CONSERVATORSHIPS OF FANNIE MAE AND FREDDIE
MAC WERE PLANNED BY TREASURY WELL IN ADVANCE. .......... 7
II. TREASURY’S INTERVENTION WITH FANNIE MAE AND
FREDDIE MAC WAS NOT A RESCUE................................................... 13
III. THE SENIOR PREFERRED STOCK USED TO ASSIST FANNIE
MAE AND FREDDIE MAC HAD NO PRECEDENT IN
FINANCIAL REGULATION..................................................................... 15
IV. THE OVERWHELMING MAJORITY OF FANNIE MAE’S AND FREDDIE MAC’S 2008-2011 LOSSES RESULTED FROM NON-
CASH ACCOUNTING ENTRIES BOOKED FOLLOWING THE CONSERVATORSHIPS. ........................................................................... 17
V. THE THIRD AMENDMENT TO THE PSPA WAS ADOPTED TO PREVENT FANNIE MAE AND FREDDIE MAC FROM
BENEFITING FROM THE REVERSAL OF DISCRETIONARY ACCOUNTING LOSSES TAKEN EARLIER........................................... 26
VI. THE COMPENSATION TREASURY GRANTED ITSELF UPON TAKING OVER FANNIE MAE AND FREDDIE MAC WAS
GROSSLY DISPROPORTIONATE TO THE ECONOMIC RISK IT FACED........................................................................................................ 29