Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Yesterday, Professor Anjan Thakor on the Witness Stand, pointed out to the Jurors (and anyone else listening) that the NWS was unnecessary because:

1. The GSES were charged 10% or TWICE the going Bailout Interest Rate of 5% for all the other Bailout TBTF financial intermediaries. Hence the 10% return the UST received is more than adequate and the NWS was unnecessary.

2. The PCF on the remaining draw amount after his thorough analysis determined an appropriate PCF between 2.5 bps and 45 bps.

3. The NWS or 3rd Amendment was not in the Public's Best Interest since the Public Interest here is the stability of the US Secondary Mortgage Market. By taking all the profits into perpetuity, the corporations could never build Capitol.