By GRETCHEN MORGENSON
Published: October 3, 2004
NYT-
IT is literally a trillion-dollar question: What will a humbled, reined-in Fannie Mae, the nation’s biggest mortgage provider, mean to the economy, the financial markets, interest rates and housing in America?
Since regulators disclosed evidence of widespread accounting improprieties at the company, which carries almost $1 trillion in mortgages on its books, the response from the financial markets has been surprisingly muted. To be sure, Fannie Mae’s stock has lost 14 percent of its value, but its debt securities have held fairly steady and the pools of mortgages it sells to investors have continued to attract buyers.
Even if Fannie Mae’s troubles are eventually worked out, there may be other, potentially nasty reverberations from the company’s weakened position. These include a possible hit to the dollar if foreign investors, who have bought so much of the company’s debt, become alarmed by the accounting problems and sell.
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
And they are getting Bonuses? Come on America, Fire top Execs, they will land jobs with Banks they have been in bed with for a long time. Fannie is the Investor concerning my home and I want to see the paperwork! I now say sorry taxpayers because this company is so screwed up they will be losing much money each day this crisis goes on………..