What's happening in monetary policy and macroeconomics.
Monday, May 10, 2010
Fannie Mae's financial report for the first quarter (see here) was published today, with much the same story as for Freddie Mac (see here). Both Fannie Mae and Freddie Mac have reported losses, and will need more bailout money from the Treasury. An interesting feature of the reports from both agencies, is that some of the losses are due to changes in accounting. I am interested in learning more about this. Were Fannie and Freddie engaged in accounting practices that hid the extent of the risks they were taking?