Fannie Mae-No Politics (FNMA)

[brandemarcus]

The bank bad loan rate was twice as much! Bank portfolios are much riskier , look at bank losses in the recession of 1990-91 compared to the Gse's. what's the collateral on a credit card!
May I also mention Latin American debt , commercial real estate , junk bonds ? The tax payers are just as much on the hook thru the Fdic! Talk about explicit guarantees for the tax payer!

There was a reason required capital levels at banks were much higher than for the gse's , because look at the track record! Again even in the last crisis the banks did that much worse. Citi, Bac were in more trouble than the Gse's. Let's leave aside Morgan Stanley with 15 billion lost at one trading desk!

As a matter fact ,John Hempton in November 2009 compared accounting at Bac with Fannie mae for the 3rd quarter of 2009. An apples to apples comparison of loan loss provisions to charge-offs. It can be done!