A: Billions of $ in hidden losses, says FT.com:
A Financial Times analysis of Fannie's accounts suggests it may have incurred losses on its derivatives trading of $24bn between 2000 and third-quarter 2003. ........."They have used the derivative accounting rules for cash flow hedges to defer some losses that they have taken," said John Barnett, senior analyst at the Center for Financial Research & Analysis, an independent research firm. "They may not be as well-capitalised as they appear to be for regulatory purposes."
Fannie Mae is dismissing criticism from FRB chair Greenspan, CEA chair Mankiw, Treasury Secretary Snow, & Congress. See the other stories linked in the FT article. This could get interesting.