Peter Eavis has an interesting piece on Fannie Mae and the way it changed how it discloses its bad loans. Fannie’s loss ratio appears to be escalating while Fannie’s management is spraying Chanel No. 5 on a rotted carcass. Fannie, with $40 billion of capital, is exposed to $74 billion on subprime loans and $196 billion in Alt-A loans.
See more on Fannie Mae here.