Fannie Mae Cooking The Books

[TheDudeofLife]

Quote from Hydroblunt:

LOL, yeah, I remember when it was to hide income, cause they were making too much money. Like in 2003-2005.

Good old Franklin Raines. Fannie Mae GSE (Government Sponsored Enron).

On December 18, 2006, U.S. regulators filed 101 civil charges against chief executive Franklin Raines; chief financial officer J. Timothy Howard; and the former controller Leanne G. Spencer. The three are accused of manipulating Fannie Mae earnings to maximize their bonuses. The lawsuit seeks to recoup more than $115 million in bonus payments, collectively accrued by the trio from 1998–2004, and about $100 million in penalties for their involvement in the accounting scandal.

 

[ASusilovic]

Quote from subban:

I am definetly going to be buying OTM puts in Feb. If you bought Fredie mac otm puts this dec you could of made a killing.

You bought the OTM FEB puts ?

 

[Hook N. Sinker]

http://www.elitetrader.com/vb/showthread.php?s=&postid=1558227

The article reports that during August 2007 Fannie Mae was requesting and being asked to buy more mortgage loans. Possibly the least desirable mortgages were sold to Fannie Mae.

 

[subban]

Quote from ASusilovic:

You bought the OTM FEB puts ?

No not yet. Too overpriced now. I will let more theta decay and buy in late jan right before fannie comes with earnings on feb, 5th.