Fannie Mae-No Politics (FNMA)

[Wise Man]

THIS WSJ ARTICLE WILL TERMINATE CHRIS LOWN's CFO JOB WITH FMCC BEFORE HE FORMALLY JOINS THE COMPANY ON JUNE 15th
(Besides due to the illegal Golden Parachute payment signed)
Excerpt from a WSJ article that gives detail about the task entrusted to Morgan Stanley on the sidelines of a Jackson Hole meeting during the weekend of August 18th, 2008.
It's clearly a task of company valuation for the Mergers and Acquisitions team, that Chris Lown has much experience on, according to FMCC CEO in the press release of the appointment, as Morgan Stanley Co-Head of North America Banks and Diversified Finance since 2006.
At the time, Calabria was senior congressional staffer for Senator Shelby and crafted HERA, a law that enabled the assault on FnF making assessments about the future "(G) LOSSES: it's likely incur losses that deplete Capital", which are the assessments made by the MS team.
Now, Calabria, as FHFA Director, returns the favor to Chris Lown.

"Morgan Stanley, which had about 40 bankers working on the matter, broke into teams. They provided ongoing updates to Mr. Paulson, often meeting with him as early as 7 a.m. or as late as 11 p.m.
Morgan Stanley started soliciting outside input. During a conference call in mid-August -- one in a series -- bond-market investors with known positions in Fannie and Freddie debt were invited to give their views. Morgan Stanley bankers participated in listen-only mode so no one could interpret their reactions. Minutes of the meeting were distributed to other Treasury officials.
On the morning of Aug. 18, the Morgan Stanley team presented its preliminary findings to Treasury officials. The meeting, held in Mr. Paulson's conference room overlooking a courtyard, lasted the entire day. About 30 people participated.
Morgan Stanley bankers scoured the books on the loans guaranteed and owned by Fannie and Freddie. Using assessments about what would happen to the housing market over the next 18 months, they determined that the companies were in need of as much as $50 billion.
Morgan Stanley presented three options to Treasury: receivership; a less aggressive option called conservatorship, in which the companies' regulator, the FHFA, would essentially run the companies' operations; and the even more incremental step of having the companies try to raise money on their own.
In late August,during the Fed retreat in Jackson Hole, top central-bank officials from Washington and New York slipped out of conference sessions and met for several hours in a lodge conference room to discuss options...."
SAY NO TO AN INVESTMENT BANKER IN THE JOB OF CFO.