Replies to post #376504 on Fannie Mae-No Politics (FNMA)

[Steelhead9]

"How difficult was it to place them in conservatorship? What criteria had to be met?"

Those sir (or ma'am), are two questions that MIGHT be able to make all of us very wealthy. because part of the process for putting a company into conservatorchip is showing through standard accounting procedures that the company is in danger of becoming insolvent.

This leads me to the two accounting fraud lawsuits (one against Freddie Mac's accountants) having been settled. As part of the procedure required to put Fannie Mae into Conservatorship, the accounting firm used by the government had to show that a company (FNMA) that had been declared to be on solid finacial footing only two weeks prior was now in danger of insolvency.

there exist so many questions about the standards and methods used and NOT used to come to these conclusions as to provide cause for these suits alleging such accounting fraud. The next logical question is, of course, "Why?" Why would two independent accounting firms take measures and use methods that they hadn't used before and that no one in the industry used, to reach conclusions that seemed to conclude, incorrectly that these two companies required a $187B cash infusion? Who benefited, we ask rather rhetorically.

If this is proven to be the accounting fraud that so many shareholders suspect, it isn't hard to guess where the footprints will lead. Just follow the money ... $255B and counting. If there exists a paper trail to prove this, recompenses and damages could lead to share values that make me tremble to even consider.