Good old Franklin Raines. Fannie Mae GSE (Government Sponsored Enron). On December 18, 2006, U.S. regulators filed 101 civil charges against chief executive Franklin Raines; chief financial officer J. Timothy Howard; and the former controller Leanne G. Spencer. The three are accused of manipulating Fannie Mae earnings to maximize their bonuses. The lawsuit seeks to recoup more than $115 million in bonus payments, collectively accrued by the trio from 1998â2004, and about $100 million in penalties for their involvement in the accounting scandal.
http://www.elitetrader.com/vb/showthread.php?s=&postid=1558227 The article reports that during August 2007 Fannie Mae was requesting and being asked to buy more mortgage loans. Possibly the least desirable mortgages were sold to Fannie Mae.
No not yet. Too overpriced now. I will let more theta decay and buy in late jan right before fannie comes with earnings on feb, 5th.