Fannie Mae-No Politics (FNMA)

[DaJester]

"Treasury just writing that off for nothing in return would blow a $220B hole in the entire nation's balance sheet. Political fallout indeed!"

Yes, but again, outside of political fallout, there is no law that the SPS can't be written down. The laws being thrown around referred to debt.

How did the $220B get on the balance sheet to begin with? So it's ok for the money to appear from an illegal (or at least bad faith) contract, but it can't be removed once it's uncovered? I fail to see how the remedy for ill-gotten money is not the removal of that money. The only thing stopping it is politics, not the law.