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Notes to Chapter 17 611

12. Ibid., pp. 2, 4, 7.
13. Paulson, interview.
14. David Nason, Tony Ryan, and Jeremiah Norton, Treasury officials, interview by FCIC, March 12,
2010.
15. James Lockhart, quoted in Steven Sloan, “Setting an OFHEO Plan, But Wishing Otherwise,”
American Banker, December 21, 2007.
16. Fannie Mae, “Single-Family Book Characteristics Report,” September 2008.
17. “OFHEO Provides Flexibility on Fannie Mae, Freddie Mac Mortgage Portfolios,” OFHEO news re-
lease, September 19, 2007, p. 1.
18. Lockhart, written testimony for the FCIC, April 4, 2010, p. 13.
19. Ben Bernanke, quoted in Eric Dash, “Fannie Mae to Be Allowed to Expand Its Portfolio,” New
York Times, September 20, 2007.
20. Senator Charles E. Schumer, letter to OFHEO Director James B. Lockhart III, February 25, 2008;
Schumer continued, “If you have decided that you will be keeping the capital surcharge in place . . . , I
would like an explanation as to why you think upholding that restriction outweighs the importance of
providing capital relief that could better position the GSEs to provide rescue products for borrowers
stuck in unaffordable loans.”
21. “Fannie Mae Reports 2007 Financial Results,” Fannie Mae press release, February 17, 2008.
22. Daniel Mudd, interview by FCIC, March 26, 2010.
23. Robert Steel, email to Jeremiah Norton, February 28, 2008.
24. Michael Farrell, email to Robert Steel, March 6, 2008.
25. Emails between Robert K. Steel and Daniel Mudd, March 7, 2008.
26. Daniel Mudd, email to Robert Levin, March 7, 2008.
27. “Fannie Mae Insolvency and Its Consequences,” p. 1; attachment to email from Jason Thomas to
Robert Steel, March 8, 2008.
28. Robert Steel, email to David Nason, Tony Ryan, Jeremiah Norton, and Neel Kashkari, subject: “re:
GSEs,” March 16, 2008.
29. James Lockhart, interview by FCIC, March 19, 2010.
30. Paulson, interview.
31. James Lockhart, email to Daniel H. Mudd, Robert Steel, and Dick Syron, subject: “Re: announce-
ment draft,” March 17, 2008.
32. Ibid.
33. “OFHEO, Fannie Mae and Freddie Mac Announce Initiative to Increase Mortgage Market Liquid-
ity,” OFHEO news release, March 19, 2008.
34. Paulson, interview.
35. Joshua Rosner, “OFHEO Got Rolled,” GrahamFisher Weekly Spew, March 19, 2008.
36. Donald Bisenius, interview by FCIC, September 29, 2010.
37. “Freddie Mac CEO Richard Syron Talks about the Stock Slide,” PBS Nightly Business Report,
Wednesday, August 6, 2008, transcript.
38. Lockhart, interview.
39. Daniel Mudd, letters to James Lockhart, August 1, 2008, and August 15, 2008.
40. Timothy P. Clark (senior adviser, Division of Banking and Supervision, Federal Reserve Board)
and Scott Alvarez (general counsel, Federal Reserve Board), interview by FCIC, February 23, 2010.
41. “Board Grants Federal Reserve Bank of New York the Authority to Lend to Fannie Mae and Fred-
die Mac Should Such Lending Prove Necessary,” Federal Reserve Board press release, July 13, 2008.
42. Alvarez, interview.
43. Treasury Secretary Henry Paulson, testimony on GSE initiatives, Recent Developments in U.S. Fi-
nancial Markets and the Regulatory Responses to Them, Senate Committee on Banking, Housing, and Ur-
ban Affairs, 110th Cong., 2nd sess., July 15, 2008.
44. “Statement by Daniel H. Mudd, President and CEO,” Fannie Mae press release, July 13, 2008.
45. Clark, interview
46. Mudd, interview.
47. Clark, interview.
48. Susan Eckert, Kevin Bailey, and other OCC staff, interview by FCIC, February 19, 2010.