Fannie Mae-No Politics (FNMA)

[FOFreddie]

Perhaps the UST should be enjoined from exercising any rights with the SPS because the do not have "clean hands" under the general principals of Equity.

They definitely contributed to the crisis in the MBS market that was the pretext for Conservatorship by their conversations with MBS market participants and the plant of the Barrons article which was the pretext for nationalization and HERA on March 8, 2008.

It is a open question whether Bear Stearns or Wachovia would have had to be bailed out if it was not for the industry conversations and the Barron's plant the week before Bear failed.

Would the sale of the common and JPS been completed if the market knew UST was advocating a nationalization and had planted the Barron's article?

Would Sheila Bair allowed the UST official who was intimately involved in the nationalization efforts become Chairman of Wachovia if she knew about the Barrons plant and UST memo?