Herb Allison,, former president of Merrill Lynch, is the government appointed head of Fannie Mae.
i have been observing for some time that trading in both Fannie Mae and Freddie Mac should have been suspended because any financial analyst with even a broken pencil could see that both companies were grossly insolvent.
Merrill Lynch, Goldman Sachs, and all the brokers have at least one sharp pencil buried beneath the salesmen, and should have reasonably known of the de facto insolvency. They should have advised their customers that these firms were insolvent.
Trial lawyers, paradise is here!
The potential liability is huge to Merrill Lynch for continuing trading these stocks and permitting their customers to buy them through Merrill Lynch, earning excessive commissions for Merrill. The lower a stock price, the higher the commission as a percent of the trade.
Now the former president of one of the firms who did hundreds of billions of trading in the bad paper is in charge of Fannie Mae?
Is there no Shame?
There certainly is no honor left in American finance ad its regulators.