Replies to post #177127 on Fannie Mae-No Politics (FNMA)

[feralcomprehension]

IMO the different handling was entirely motivated by politics. FnF were vastly powerful ($10-$20B in annual profits will do that) and consequently had very powerful enemies.

When it comes down to it, there was a significant political component to the final draw total as well- certain subjective accounting items (loan loss reserves) were pumped up via worst-case scenarios, causing larger draws, which caused larger div requirements, which caused larger draws, etc...

[TII]

Bmp152, this is exactly part of what Richard Epstein has been preaching over and over for almost a year. I'm sure you've heard him speak, if not, you should look him up.

I've been researching the just released FOMC transcripts today, albeit they've conveniently omitted the most important meetings regarding FnF, AIG and Lehman, to see if I can find anything of importance.

Loving all of the positive press we are seeing. Don't think for a minute that Ackman, Berk. and Nader haven't been working the phones, so to speak.