Replies to post #404001 on Fannie Mae-No Politics (FNMA)

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In the years leading up to 2008, China accumulated more than $500 billion in agency mortgage bonds, causing plenty of anxiety when their value tanked in the U.S. financial crisis. “I was talking to them regularly because I didn’t want them to dump the securities on the market and precipitate a bigger crisis,” Hank Paulson, Treasury Secretary from 2006 to 2009, said in a 2014 interview.

Paulson claimed that the Russian government at one point tried to topple the US economy by selling its Fannie and Freddie bonds in concert with China.

“The Chinese weren’t going to do that but again, it just, it just drove home to me how vulnerable I felt until we had put Fannie and Freddie into conservatorship,” Paulson said.

Is this what drove Paulson to skew F&F accounting records to justify placing them in "conseivership"? Was he just attempting to bolster Chinese confidence to prevent a selloff by demonstrating US Gov backing of the twins through "conseivership"?