Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: AdamSelene235
I like the quotes at the top of your home page. The links to the systemic risks report does not work, however.

You identify JPM as a potential receivers of Fannie. Which do you suspect has the riskier portfolio: JPM or Fannie? Based on bank secrecy laws we will never know, of course. You could say JPM is more diversified, perhaps, but Fannie's operations are relatively plain vanilla relatively speaking. Also, JPM has the HUGE special accounting privilege (accorded only to banks) to mark its assets to market, selectively. In other words, even when JPM reflects viability, you can never be sure. Give Fannie, or any other entity the ability to selectively mark to market and no problems will ever exist---on paper. The real world will be a different story entirely!

10 posted on 06/05/2003 10:26:26 AM PDT by Deuce
[ Post Reply | Private Reply | To 9 | View Replies ]


To: Deuce
http://www.ofheo.gov/media/archive/docs/reports/sysrisk.pdf
11 posted on 06/05/2003 10:35:25 AM PDT by AdamSelene235 (Like all the jolly good fellows, I drink my whiskey clear....)
[ Post Reply | Private Reply | To 10 | View Replies ]

To: Deuce
Which do you suspect has the riskier portfolio: JPM or Fannie? Based on bank secrecy laws we will never know, of course.

There you have it. Fannie is exempt from SEC laws concerning transparency so it is again impossible to know.

Of course, once risk reaches a certain level it ceases to be a liabilty and becomes a negotiating tool.

12 posted on 06/05/2003 10:43:00 AM PDT by AdamSelene235 (Like all the jolly good fellows, I drink my whiskey clear....)
[ Post Reply | Private Reply | To 10 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson