Constant's pations

If it's more than 30 minutes old, it's not news. It's a blog.

Saturday, October 09, 2004

Fannie Mae Splits Hairs and loses $14B -- oops?

The idiots are in control of the printing machine, Dr. Strangelove. Where the auditors this time, Mr Donaldson and Mr Ashkroft?

Fannie Mae and Freddie Mac wield influence on Capitol Hill and are heavy contributors to lawmakers of both parties.

That's another way of saying, Fed keeps interests rates low; bubble-backed Fannie Mae lends money to risky borrowers, and then uses that "profit" to lobby Congress for cursory oversight.

This is not solid foundation for confidence: "arguable interpretation of complex rules" -- indeed, this is nothing but an unproven assumption, not a premise.

Where are the outside autitors?

Why are the rules so far in dispute?

They brough in outside auditors to review the matter?

The report that they are talking about is being spoken of as if it were some "foreign entity" -- Get this quote by the CEO, the guy who is in charge of leading:

Raines said his company "looked for the facts" in the regulators' report of their investigation but had found none.

There's a difference between the facts, the investigation, the auditor's report, the regulator's report, and the assumptions of the reguators.

CEO Raines has failed to adequately address the question, and simply thrown all the mess toghether and say, "There are no facts." That's complete non-sense, as the facts as we know them are: There's been an allegation of misstatement in the financials, and we have no straight story.

The burden of proof rests with the CEO. And he has no foundation. How many more days until this idiot is fired?