Morgan Stanley to advise on Freddie and Fannie capitalization with no access to the books

Karl Denninger points us to this new on Yahoo. Here's some quotes (unfortunately, this no joke):

WASHINGTON (Reuters) - The Treasury said on Tuesday it hired Morgan Stanley (NYSE:MS - News) to advise it on whether housing finance giants Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) are adequately capitalized as the government tries to determine how it would use its new powers to support the two companies.
[...]
A Treasury spokeswoman said Morgan Stanley would not have access to Fannie's and Freddie's internal books in conducting its analyses.