Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

It ought to be interesting to watch. It seems like the "Emergency Lending Facility", where all the banks can loan at par, EVEN THOUGH PAR is well ABOVE fair market value (because the MBS or UST bond coupons are way below current market interest rates), it just seems like a bailout for US banks by the federal reserve, FDIC, and UST.

Is the US government picking winners and losers here? SVB and Signature Bank in NY go into receivership and all the other US banks with approximately $620B in unrealized Losses (and counting as interest rates continue rising) now get to borrow against their underwater MBS and UST bonds at the pretend PAR value.

How much blame goes to lax regulation of banks interest rate risk policy? What do you think?