Fannie Mae-No Politics (FNMA)

[Wise Man]

The Nationalization never happened. If that moron calls a Conservatorship "nationalization", is because he's an ignorant.
Nationalization is when there's a divestiture of title to private property and it never occurred, also known as Taking or eminent domain.
Conservatorship is for the rehabilitation of companies.
The U.S. Govt didn't "seize" the companies, but the FHFA named itself conservator of the enterprises and now it's the only one in control.
Also he ignores that the Charter already contemplated a low cost borrowing scheme from the Treasury before 2008 HERA.

That's just an email from an advisor to UST, leaked to the media to desestabilize FnF, making them have difficulties in accessing the debt markets, but we have other exemples at the time:

*July 10th, 2008, WSJ’s Editorial: “Investors are saying that a Bear Stearns-like run on the companies is a real possibility, and they're right”. http://online.wsj.com/article/SB121564782376340951.html?mod=hpp_us_whats_news


*July 10th, 2008, WSJ frontpage: “Administration Ramps Up Contingency Planning as Mortgage Giants Struggle. http://online.wsj.com/article/SB121565255349741343.html?mod=opinion_main_review_and_outlooks

*July 9, 2008, William Poole, a former president of the Federal Reserve Bank of St. Louis, said that FnF were insolvent: “Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer”. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=as4DEc5UFopA


* NYT reported on July 11, 2008, “U.S. weighs takeover of two mortgage giants”. “Senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday”.”Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing”.
http://www.nytimes.com/2008/07/11/business/11fannie.html?pagewanted=all
This article cites “government officials”.


*July 21th, 2008, H.Paulson-hedge fund managers chat at Eton Park Capital Management headquarters (Bloomberg Market Magazine’s exclusive).