Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Did not read but the CDO and derivatives of the REAL CDOs were a big problem

So was simple lying cheating and greed by banks and other huge players in the financial markets

The only risk F and F took that I read about was F and F invested a chunk of their capital reserves in private label MBS for the higher interest and because they(F2) thought they knew how to judge these. Turns out that paper often - despite AA ratings - was built on mortgages that were garbage due to the gimmicks in the mortgage or simple cheating and lying. (This was NOT - again NOT GSE paper).

So when that paper - that F and F had bought - took a major hit in value - the Balance Sheet of F and F took an ugly hit