Fannie Mae-No Politics (FNMA)

[LuLeVan]

Look at the structural parallels: Fannie/Freddie and AIG were the two scapegoats. All TBTF banks except Lehman were off the hook. Lehman "had" to be "slaughtered" by Hank Paulson so he could push through the AIG bailout (indirect GS & TBTF bailout). Paulson used similar "terror" to force the Fannie/Freddie boards into conservatorship.

Paulson even wanted to put FnF into receivership, but G. W. Bush prevented him from doing so because otherwise the FnF MBS would have to be added to the U.S. national debt.