Rethinking Fannie, Freddie and Mortgages [View article]
"My small contribution to the effort was showing that the fair value balance sheet was not compatible with the standard balance sheet"
As I look at the FRE & FNM June 30 balance sheets it is striking how much better FNMs financial condition looks than FRE. If I were a FNM shareholder I would be irate, and screaming at my Congressman, about the takeover at a time the company had a 4.7% capital ratio and a primary regulator that said 1 month ago that the company's need for a capital infusion was overstated.
Was this a case of the Treasury Secretary just reacting to the foreign sovereign wealth funds demands for an explicit guaranty and beating up on the regulator to get an insolvency verdict?
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"My small contribution to the effort was showing that the fair value balance sheet was not compatible with the standard balance sheet"
Sep 13 16:07 pm
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All Comments by Kinabalu »Rethinking Fannie, Freddie and Mortgages [View article]
As I look at the FRE & FNM June 30 balance sheets it is striking how much better FNMs financial condition looks than FRE. If I were a FNM shareholder I would be irate, and screaming at my Congressman, about the takeover at a time the company had a 4.7% capital ratio and a primary regulator that said 1 month ago that the company's need for a capital infusion was overstated.
Was this a case of the Treasury Secretary just reacting to the foreign sovereign wealth funds demands for an explicit guaranty and beating up on the regulator to get an insolvency verdict?