KEY E-MAILS FROM THE FCIC FINANCIAL CRISIS INVESTIGATION

March 7, 2008 Fannie Mae E-Mail exchange between Daniel Mudd, Robert Levin, and Robert

Robert J. Levin, Former Executive Vice President and Chief Business Officer, Fannie Mae

Daniel H. Mudd, Former President and Chief Executive Officer, Fannie Mae

Robert Steel, Treasury Undersecretary

In the days leading up to the Bear Stearns meltdown, Treasury undersecretary Robert Steel informed Fannie Mae CEO Daniel Mudd that he had "encouraging" conversations with Senator Richard Shelby, the ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, and Representative Barney Frank, chairman of the House Financial Services Committee, about the possibility of government-sponsored enterprise (GSE) reform legislation and capital relief for the GSEs. Steel intended to speak with Senate Banking Committee Chairman Christopher Dodd. Mudd was confident that the government desperately needed the GSEs to back up the mortgage market, so Mudd proposed an "easier trade." Mudd proposed that if regulators would eliminate the surcharge, Fannie Mae would agree to raise new capital. Also in this March 7, 2008 email to Fannie chief business officer Robert Levin, Mudd suggested that the 30% capital surplus requirement might be reduced without any trade: "It's a time game.. whether they need us more... or if we hit the capital wall first. Be cool."

 

2008-03-07 E-Mail exchange between Daniel Mudd, Robert Levin, and Robert Steel-1
2008-03-07 E-Mail exchange between Daniel Mudd, Robert Levin, and Robert Steel-2
[Home] [Samples] [E-Mails] [Order] [Contact Us]