Fannie Mae Preferred S (FNMAS)

[rosen62]

Joe, without trying to sound.. ehem... self-righteous, I am not sure about this sentence:

The gov could not just make a large loan as that would have put them into insolvency even more.

According to Paulson's own public statement on Sept. 7th, 2008 the companies had a liquidity issue, not a solvency problem. And that the funding commitment would act as the "ultimate liquidity backstop" in his own words.

Here is the whole text (which reads surprisingly fine).
http://money.cnn.com/2008/09/07/news/economy/paulsonstatement/

The "donotunderstand" issue is "water under the bridge". It doesn't matter. And yes, he/she is refreshingly pragmatic.