Fannie Mae-No Politics (FNMA)

[big-yank]

The lead-in to FNMA conservatorship was investigation riddled.

Go back to 2004. Fannie Mae was under investigation by Congress, the Justice Department, the Securities and Exchange Commission and the oversight regulator pre-FHFA, OFHEO. There were huge suspicions and dark clouds everywhere within the Beltway. Why would investment and fund managers take or hold share positions in public companies where so much grist was churning in the rumor mill. Here's just one C-Span report that sums up the lead-in era quite well as matters stood on DEC 14, 2004.

http://www.c-span.org/video/?184820-1/investigation-fannie-mae

I am weary of the lame argument that Fannie needed no conservatorship. Fannie was a TRAINWRECK. How could professional investment advisors keep such murky stocks in client portfolios?

JMHO.