Replies to post #625371 on Fannie Mae-No Politics (FNMA)

[Guido2]

Yes, I can. They had $95 billion in capital in July 2008 according to their regulator James Lockhart. Nothing in their Q2 2008 balance sheets contradicts this.

https://www.fhfa.gov/mobile/Pages/public-affairs-detail.aspx?PageName=Statement-of-OFHEO-Director-James-B-Lockhart-in-Support-of-Secretary-Paulson,-Administration-and-the-Federal-Reserve-in-T.aspx

His statement was backed by Hank Paulson.

https://www.marketwatch.com/story/paulson-fannie-and-freddie-are-adequately-capitalized

At the time they were put in conservatorship Paulson gave the reason as being to provide liquidity to the financial markets.

https://www.treasury.gov/press-center/press-releases/Pages/hp1129.aspx

President Bush gave the same reason.

The writedowns came after conservatorship. Hundred thousand shares for a single dollar is not justified.