| According to a story that ran in Bloomsbury News, "...on July 21, 2008, then-Secretary of the Treasury Hank Paulson met with "a dozen or so hedge- fund managers and other Wall Street executives" and discussed "a possible scenario for placing Fannie [Mae] and Freddie [Mac] into "conservatorship.'" That's a fancy term for a government seizure that would have allowed the entities to keep operating, but would have caused severe adverse consequences to holders of the Frannies' equity and, possibly, debt. A fund manager told Bloomberg he was "shocked that Paulson would furnish such specific information -- to his mind, leaving little doubt that the Treasury Department would carry out the plan." After the meeting, this manager consulted a lawyer, who told him to cease trading immediately in the Frannies, lest he later be accused of -- here's the rub -- insider trading..." |
Read the rest of the story HERE:
At www.propublica.org
At www.propublica.org
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