FDIC Federal Register Citations

From: Victor Chin
Sent: Wednesday, October 08, 2008 8:41 AM
To: WebMaster
Subject: Regulators seek comment on plan to reduce risk weight for Fannie Mae, Freddie Mac debt

Dear Sir/Madam,
 
I am a shareholder of Fannie Mae. Recently I saw that FDIC is seeking public comments on
reducing the risk weight on all credit exposure to Fannie and Freddie to 10 percent from the current 20 percent.

I strongly support this move that will prevent an otherwise healthy company from taking too much risk.
 
As a shareholder, I would also encourage the restructuring of Fannie Mae into a more regulated,
responsible company. I hope that management would take some time to consider the following list of suggestions:  
 
1) Restructure Fannie Mae in a way that prevent banks from dumping risky mortgages into the company.
 
2) Fannie Mae must be allowed to deal in transactions involving healthy mortgages - serving high, middle and low income earners, rather than just the middle and low income range. This will create a wider spread of transactions, thus reducing risk. 
 
3) The government will take a way it's guarantee of Fannie Mae in the future, and reverse the
guarantee so that banks that sell mortgages to Fannie Mae will be the ones made liable to guarantee.
In country such as Malaysia, their Fannie Mae equivalent is doing this and this promotes a sense of
RESPONSIBILITY for all parties. The government should not allow such bailout to happen again.
It is a waste of taxpayer money.
 
4) Management should perform detailed analysis, and in the future, decide whether it still need the
support of $200 billion from Treasury. If management deemed that Fannie is able to stand on its own,
the goverment has no right to put the warrant in place. If that is so, I urge that the goverment cancel the warrant.   
 
I thank you for your time in reading this email. Please kindly take them into consideration in your restructuring of this company.
 
Regards,
Victor