New documents undercut case for sweep at Frannie

• In a deposition taken last summer, former Fannie Mae (OTCQB:FNMA +11.5%) CFO Susan McFarland recounts telling high-level Treasury officials on August 9, 2012 that the company was "now in a sustainable profitability," and a presentation now unveiled shows 10 years of internal projections indicating no need for further government assistance.
• Just over a week after that meeting, Treasury announced the profit sweep for Fannie and Freddie (OTCQB:FMCC +8.6%).
• McFarland, in last summer's deposition, says she believes that August 2012 meeting propelled the government to quickly change the terms of Fannie's and Freddie's bailouts to put in place the seizing of any profits.
• McFarland: "It was probably a desire not to allow capital to build up within the enterprises and not to allow the enterprises to recapitalize themselves.”
• Source: NYT
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