Replies to post #449054 on Fannie Mae-No Politics (FNMA)

[10bambam]

Thanks Navy. I mixed up the order of events. FnF were already in conservatorship due to magic wand accounting, not turning a profit according to FHFA and THEN ordered by the FHFA to take on more garbage loans to the tune of $40 billion a month. This was the FHFA plan to return the twins to a safe and sound condition.
Bizarro World
Go FnF

[Donotunderstand]

For sure
F and F had to buy paper that was in trouble


That was an effort to put a floor under the financial market


Do we know what the outcome was ?

Was F and F forced to buy at "face" or could it buy at market price (a huge discount to face I would imagine)

And did F and F lose money on this activity -- as we know the drop in value was reversed and some people buying distressed paper made a fortune

[Pecker9Wood]

Nothing like a trip down memory lane. The twins are and were the salvation of our economy and their reward is too be posted as the poster children of all our woes. Pathetic!

[Sogo]

Makes me so sick. Level of crime is astounding.

[Stern is Bald]

I interpret that as not only were F&F stable in 2008 but in fact were forced a assume private banks debt to keep them from falling harder and faster.