Fannie Mae-No Politics (FNMA)

[capitalismforever]

Did that strengthen Gov justification for placing them in conservatorship? Was that a reasonable thing to do from an accounting perspective or was it just a tool used simply to justify conservatorship?

Reasonability is open to interpretation. Did the government need to put them in conservatorship? No. Did they have the right to? Yes. It's really debatable based on which angle you're looking at it. A very difficult question to answer. Hopefully the courts will make the determination before it's too late.

My personal opinion is that they shouldn't have told the public one week they were doing fine and there's no reason to worry because they're date and sound (Chris Dodd), then the next week they are under conservatorship. Reminds me of what WorldCom did, and the CEO went to jail.