Cooking the books

Fannie Mae and Freddie Mac understated their exposure to subprime and reduced-documentation mortgages by 90%.  Freddie disclosed $140 billion of their $901 billion exposure; Fannie disclosed just $73.7 billion of their $1.1 trillion exposure.

This might have been good to know as the federal government was deciding to give Fannie and Freddie a blank check.

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