Fannie Mae Is Near the Limit

Reuters reports Fannie has been buying:

The nearly 13 percent increase put the company's holdings near caps set by the Office of Federal Housing Enterprise Oversight after an accounting scandal earlier this decade that derailed its timely financial reporting.

Shares of Fannie Mae stock slid on Friday with the company bumping up against investment curbs, which could impede profits. Fannie Mae's shares fell 2.7 percent to $66.28 on the New York Stock Exchange.

We shall see if Democrats like Barney Frank(Democrat-Fannie Mae)and Senator Chris Dodd (Democrat-Fannie Mae) can prove they are worth the campaign contributions they get to remove some regulations for Fannie.