Fannie, Freddie stabilize after OFHEO comments - Forbes.com:
"If Fannie and Freddie were to have to add portions of their securitizations business back on to their balance sheets, Fannie Mae would need to raise $46 billion in cash to meet capital requirements, while Freddie Mac would need to raise $29 billion, Lehman Brothers analyst Bruce Harting wrote in a research note Monday.
Analysts widely agreed any accounting rule change likely would not affect Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac's regulator already requires reserves for off-balance sheet securitizations, Keefe, Bruyette & Woods Inc. analyst Frederick Cannon wrote in a research note Tuesday. Because of those requirements already in place, and the government's support of the GSEs role in stabilizing the mortgage market, Cannon said it is unlikely the pair would be affected by new accounting standards"
Norton's comment: How do they get away with keeping this bond activity and risks Off-Balance Sheet where it is not available for public scrutiny?
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