Fannie Mae-No Politics (FNMA)

[Daveknowsnothing]

I like this part....
For example, in support of the bill, Senator Isakson (R-GA) explained that: The bill we are doing tomorrow is not a bailout to Freddie Mac and Fannie Mae or the institutions that made bad loans. It is an infusion of confidence the financial markets need. Fannie and Freddie suffer by perception from the difficulties of our mortgage market. If anybody would take the time to go look at the default rates, for example, they would look at the loans Fannie Mae holds, and they are at 1.2 percent, well under what is considered a normal, good, healthy balance. The subprime market’s defaults are in the 4 to 6 to 8-point range. That is causing that problem. That wasn’t Fannie Mae paper, and it wasn’t securitized by Fannie Mae. They have $50 billion in capital, when the requirement is to have $15 billion, so they are sound.