Fannie Mae "Mistake"
In a surprise announcement, the company yesterday said that they will be adjusting the balance sheet, specifically shareholder's equity, by the $1.3 billion discrepancy because of "computational errors": they "found" $1.3 billion in urealized gains.
Frankly, we don't even know what to say about this.
If the company made "computational errors" to the tune of $1.3 billion we must ask if it is competent to manage perhaps the most important and complex financial convexity portfolio in history.
If it is being disingenuous by massaging a problem so obvious that it was called on by us (and others) then, well, we don't know what to say about that either.
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