Affordable Housing Institute : US

Even for Fannie Mae, a $9 billion earnings knock is material, especially when set against “only” $22 billion in stockholder book equity, so Fannie Mae has announced that it will raise another $5 billion by selling preferred stock.
Fannie Mae, moving to shore up its capital, said yesterday it will sell $5 billion in preferred […]

With the firing of its auditor, more news on Fannie Mae’s accounting practices:
Auditor KPMG LLP found problems in the way Fannie Mae was compiling its financial results as recently as the quarter that ended Sept. 30, when the giant mortgage funding company was under a regulatory microscope, Fannie Mae disclosed last night. KPMG had […]

Fannie Mae appears headed for a potentially explosive fight with ousted former CEO Frank Raines:
Two top executives ousted from Fannie Mae last week appear headed for a fight with the company over the size of their multimillion-dollar benefits and the circumstances of their departure.
It’s enough money over which to tussle:
Raines “has asserted” that […]

Compared with ordinary mortal financial corporations, as government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac have numerous built-in competitive advantages conveyed on them by the Federal government, including:

Implicit credit subsidy: $6.5 billion annually.
Higher leverage (gearing): Unquantified.
Exemption from state and local taxes: $0.7 billion annually.
Exemption from SEC registration: $0.3 billion annually.
Treasury line of credit: […]

If you’re interested in ongoing updates on Fannie Mae, you can have the company’s press releases emailed directly to you (your choices are customizable, and you can have your email removed), and/or hear from an anti-Fannie Mae organization .

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