Fannie Mae (FNMA)

[dubbya]

Not sure sub-prime failures were all the banks fault.
Its my understanding that FnF bought and packaged only the prime mortgages but allowed themselves to get involved in accepting sub-prime which is what got them in trouble. They would have been OK if they left that damn paper alone, but Congress pressured them to lower the lending standards that served them so well for so many years.

FnF should point to this pressure to lower their lending standards and restoring sound lending practices as their way out. Congress should take a big chunk of the blame for this fiasco too since they instigated it.
The solution for FnF coming out of conservatorship is restoring the sound lending practices that served them well for many years and politicians have to keep from politicizing safe lending standards and using it for political gain.