Fannie Mae-No Politics (FNMA)

[Rodney5]

RESERVES FANNIE MAE NEVER NEEDED

James Lockhart

Congressman Alan Grayson Discusses Fannie Mae's use of Derivatives with James Lockhart of the FHFA. Hearing on June 3, 2009.

Time 5:00: Mr. Alan Grayson, Quote: “If those losses are only 192 million dollars how could 192-million-dollar loss result in a 100 billion dollar plus loss to the Taxpayer how is that possible?” End of Quote.

Mr. Lockhart of the FHFA answers, “Had to put up reserves, ooh ooh aha aha ooh aha, reserves, ooh ooh aha ooh, put up reserves for loans, aha aha aha ooh, if you think you cannot recover and loans aha aha ooh and that's what happened.” Reserves... (not an exact word for word quote of Mr. Lockhart).

Note: “If you think you cannot recover.” (Mr. Lockhart).

Time 5:55: Follow up question; Mr. Alan Grayson, Quote: “I still don't have a clear understanding from you about how a relative tiny amount like a 192 million dollar of unpaid mortgage interest on what is a trillion-dollar portfolio how that could possibly lead to Taxpayer shell out a 100 billion dollars plus.” End of Quote.

Mr. Lockhart attempts to explain the need to build up reserves... reserves... reserves...
Reserves Fannie Mae never needed.

Link:

The above Congressman Grayson referred to page 78 of June 30, 2008, 10Q. A relative tiny amount like a 192 million dollar of unpaid mortgage interest on what is a trillion-dollar portfolio how that could lead to a Taxpayer shell out a 100 billion dollars plus.

Facts: Page 7 “Our core capital as of June 30, 2008, was $47.0 billion, $14.3 billion above our statutory minimum capital requirement and $9.4 billion above our regulator-directed 15% surplus requirement.”