In tooling around the GSE websites, I was reminded of what my friend Eugene Sepulveda pointed out to me weeks ago: that the Fannie board of directors consists of 13 “outsiders” and five Presidential nominees, but that those five seats are vacant. How odd that any administration–particularly this one–would miss a chance for political patronage. It’s tempting to smell reverse cronyism–keeping the administration’s buddies out of a bad situation. But that would mean that anybody (other than the former sell-side analysts now at hedge funds who shorted the crap out of the stock) had a clue what was about to happen, which was clearly not the case.
Second Prize: Ten Board Seats