From: Victor Chin
Sent: Wednesday, October 08, 2008 8:41 AM
Subject: Regulators seek comment on plan to reduce risk weight for Fannie
Mae, Freddie Mac debt
I am a shareholder of Fannie Mae. Recently I saw that FDIC is seeking public
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.