Fannie Mae-No Politics (FNMA)

[FOFreddie]

The lost of dividends was the by product of the UST and NEC deciding to Nationalize the GSEs in March of 2008.

Jason Thomas NEC Special Advisor to GWB in Memo to Robert Steel Under Secretary of the UST March 8, 2008:

Cover Email:

Attached is the document used as the sourcing for today's Barron's article on the
potential collapse of Fannie Mae.
This is for your eyes only. I send it only to help inform potential internal
Treasury discussions about the potential costs and benefits of nationalization.
Thank you for your discretion,
Jason Thomas

From Page 13:

"As shareholder capital gets wiped, the government will have no choice but to seize the company and
place it in conservatorship or receivership."

https://fcic-static.law.stanford.edu/cdn_media/fcic-docs/2008-03-08_Treasury_Email_from_Hason_Thomas_to_Robert_Steel_Re_Source_document_for_Barrons_article_on_FNM.pdf

By the way - I bought FNMAT at $ 25 underwritten by Merrill Lynch on May 8, 2008. No one in the public markets knew about the internal UST discussions that were ongoing while billions were raised from public investors in the US Securities Market.