Reduce Reserves, That'll Fix It
How do these things happen?
I'm reading Moody's says may cut Fannie Mae financial strength and with Fannie Mae losing a couple more billion dollars than those expert analysts predicted, you know, the same ones that also predict the second half the year will be good.
So, this is what happens when people aren't looking:
"However Moody's said that its concerns were partially mitigated by news that regulator the Office of Federal Housing Enterprise Oversight may decrease the amount of surplus capital required to be held, reducing the probability Fannie Mae would breach the minimum."
We should not have to live our lives watching these idiots under a microscope for their never ending moves to negligence, incompetence and corruption.
Reserve requirements are there for a reason. Reducing them does not improve financial strength, IT DECREASES IT and this is just f---ing window dressing that puts tax payers at higher risk, along with some of the other recent moves.
With all the s--t that's happening, regulators should be stepping in and freezing dividends and until balance sheets are fixed, which with the gross level of problematic debt out there will take a few years for it to all be identified, never mind for it to all be written off and balance sheets fixed.