warren ruddman was charged by fannie mae's board which was a little shocked by this because of failure of internal controls means bad things happen and management doesn't know it until it happens. warren ruddman was charged with doing a postmortem at fannie mae, and he talked about their culture of arrogance, that's his term. the second jim collins stage is undisciplined pursuit of risk. and that you found with fannie mae and freddie mac in the mid 2000s where they plunged into the nontraditional mortgage market. gee, we're losing market share to the rest of the world, we'd better become relevant, and they plunged in. and it was an undisciplined pursuit of risk. by the time they went down, they had over $200 billion between them of aaa rated private label mortgage securities, and i've talked to somebody in government who spoke to somebody at one of the gses, so this is a double b-rated rumor because it's gone through three people who basically said the mortgage people at the gse knew that these aaa securities weren't going to act like aaas, but management wasn't listening to them. mana