Fannie Mae-No Politics (FNMA)

[jeddiemack]

Here is the crazy thing on this ... warrant.

From an accounting perspective, the govnerment excerices control thru its warrants and by contract.

If this were two private entities at play thru a third the fhfa ... as their auditor I'd require them to consoldiate the fandf into the parent company, ie. government.

Its actually been a total sec reporting farce since the beginning. becuase they exercise control and its greater than 40% ownership interset. remember the warrants are deemed excercised for this purpose since they are in the money...

They've been skirting the rules out the gate. Because they don't play by the same rules as regular companies, ie. their reporting is voluntary and not pursant to sec registrant rules they are getting away withit. but, make no mistake if these were private entities... and did what they did... in an off balance sheet way think enron... heads would have rolled and folks would be jailed.

but hey, its three government companies acting in unison / cohorts.