Monday, March 07, 2005

FNM: $1.4 Trillion In Off Balance Sheet Paper

Fortune magazine has a shocking bit of info regarding the lending giant Fannie Mae. "One major area of suspicion involves Fannie's QSPEs (or qualified special-purpose entities, which the company uses to issue mortgage-backed securities). Fannie has $1.4 trillion of such securities in its off-balance-sheet QSPEs."

The article goes on to discuss conflicts of interest among wall street firms that recommend Fannies' stock while receiving huge fees. The author shakes a finger at Fitch Ratings as well.


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