Federal backstop approval announcement

This is to announce the provision of

UNLIMITTED BACKSTOP LINE
With option to buy equity shares in

Underwriter

AMERICAN TAXPAYER

Arranger

US TREASURY

With approval from
UNITED STATES CONGRESS

JULY 2008

Fine Print
1. To Fannie and Freddie, while we have provided an unlimited backstop, this is in fact more to placate the global financial markets than to actually provide taxpayer-provided funds to bail you out of your irresponsibility. Availment will result in nationalization and breakup, your shares of stock will be worth yesterday’s paper

2. To the financial markets, now that we have approved the backstop, you know that Fannie and Freddie debt has the full faith credit of the US Government. Get your shit together because if any more of you fail, you’re not going to get the same treatment. Moral Hazard applies to you.

3. To the mortgage borrowers, please do not just default on your obligations. We really do not want to have to take over Fannie/Freddie’s mess. We prefer that you refinance at our Federally-approved long-term fixed rate.