Replies to post #611585 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

If you read Calabria's full narrative, he did nothing wrong but raise the weighted risk total for safety and soundness, following the guidance of the BASEL III global initiative.

There is no hidden, secret motive in this. If he really wanted to stick it to us, as suggested, he would not have moved $40 B for Going Concern reserves out of Risk Based Capital.

This is worse that the Secret Squirrel Plan, it is Secret Baloney.

[Wise Man]

Calabria lied in an official document that will be pubished in the Federal Register in less than one month, so this is a big deal and a reason to fire him "for cause".
He claimed that the risk weight floor of 15%, had an impact of 0.5% of the single-family UPB, that is $25 billion, on the capital requirement, and I've proven that, although the floor might have had an impact, the bulk is due to having increased the minimum rate on the risk-weighted assets from 6% to 8%, something that he conceals in the report.