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To: Haim R. Branisteanu who wrote (15615)	9/1/2000 2:57:27 PM
From: Ken98	Read Replies (2) \| Respond to of 436258

Haim, did you know that FNMA alone has outstanding guarantees around $900 BILLION + on MBS and REMIC securities. These outstanding guarantees are not reflected as either assets or liabilities on their balance sheet. Talk about counterparty risk... [BTW, did you also know that FNMA is not obligated to report regular financials like other public companies?] This is all in addition to the $500B+ in loans that they carry as assets on their balance sheet, all of which is supported by $18.5B in capital. And, if that were not enough, they have borrowed short and loaned long - 45% of their $547B in debt is due within ONE YEAR. Can you imagine what default rates like the late 80's would do to them?

To: Haim R. Branisteanu who wrote (15615)	9/1/2000 3:23:56 PM
From: LLCF	Respond to of 436258

< they are solid and insured <GGGGGGG>> My guy at Merrill touted me on the 20 mill per account [or whatever] insurance they have blah blah blah... and it begged the question, why do I need insurance with Merrill?? Any who is the insurer?? Scary DAK PS... I said, well what about the rest of the account?? <VBG,BFL> DAK