Replies to post #669208 on Fannie Mae-No Politics (FNMA)

[bradford86]

Well all the profits from 2008-2019 went to us treasury via accounting fraud and in direct violation of the law. Paying cash dividends on equity is illegal when the companies are undercapitalized and in conservatorship, but until last year the law was largely ignored

[skeptic7]

Wise man? Funniest thing ever.

[FOFreddie]

Thanks for the citations Wise Man.

I purchased shares of FNMAT at $ 25 per share from a May 2008 offering just two months after this Memo was written within the UST. The shares were rated AA-.

Here is the link to the offering:

https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/ir/pdf/stock-info/series_T_05152008.pdf

FNMA also issued 94.3 million shares of common at $ 27.50 per share and another issue of 8.75 Mandatory Preferred Stock at $ 50 per share. All together well over $ 6 bn of public capital after the intentional leak by UST to Barrons.

Obviously the Rating Agencies were not aware of the nationalization talk by UST just two months prior.

[FOFreddie]

Thanks again Wise Man

Ralph Nader sent a letter to UST Jacob Lew in 2013 well before the UST Barron's Memo was disclosed. He sets out multiple representations by US Govt officials including the UST Secretary why it was prudent to invest in the GSEs prior to imposition of the Conservatorship.

Here is the link to Mr. Nader's Letter

https://nader.org/wp-content/uploads/2013/05/lew-5-18-13-11.pdf

Hopefully Secretary Yellen will take Mr. Nader's arguments for fairness to heart especially in light of the UST actions during early 2008.