Two activist investors have authored a report highlighting the debate surrounding the facts and numbers that led to Fannie Mae and Freddie Mac being placed into conservatorship in 2008. In the 27-page report, Adam Spittler and Mike Ciklin argue that the Treasury unfairly justified GSE conservatorship via “tricky accounting” methods. In the second quarter of 2008, the report said Fannie reported a net loss of $2.8 billion. But they noted some discrepancies. “As per our analysis, we must add back the non- cash Loan Loss Reserve of $5.5 billion. After this adjustment, Fannie Mae shows a cash net income figure of $3.2 billion. This is poor evidence of a ‘failing business model,’” said the report.