NEW YORK (TheStreet) -- A look at what's lying off the books at Fannie Mae(FNM Quote) and Freddie Mac(FRE Quote) provides some clues as to why the mortgage-finance giants recently received a "blank check" from the Treasury Department for future capital needs, and why the Obama administration has delayed announcing restructuring plans.
On Jan. 1, financial firms were due to recognize all assets that were previously held off-balance sheet in special vehicles. Before the accounting rule change took effect, firms were not required to reserve capital against potential losses on those assets.
