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Fannie, Freddie Reportedly Could Require Another Bailout

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Mike Kennedy

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Fannie, Freddie Reportedly Could Require another Bailout
Fannie Mae and Freddie Mac continue to lose capital because the U.S. Department of the Treasury takes most of the government-sponsored enterprises' earnings, an action that could necessitate another bailout, Politico reported Feb. 27. The Trump administration's plans for corporate tax reform could cause the GSEs to take large write-downs. > FULL STORY
 

TJSum

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Bailout seems to be rather a poor choice of words when the government has been bogarting their profits way beyond the original bailout funds, to the tune of 75 billion plus. Only government could steal a companies profits for years and then when they have a bad quarter and no funds to fall back on, consider it a "bailout" to maybe return some of their stolen profits. They really need to end the GSE charade.
 

TRESinc

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Fannie, Freddie Reportedly Could Require another Bailout
Fannie Mae and Freddie Mac continue to lose capital because the U.S. Department of the Treasury takes most of the government-sponsored enterprises' earnings, an action that could necessitate another bailout, Politico reported Feb. 27. The Trump administration's plans for corporate tax reform could cause the GSEs to take large write-downs. > FULL STORY


i *could* win the lottery this week. then again, i *could* not. this profession has made me a skeptic of everything in life. i'll believe it when i see it.

as tj posted let the gov. use some of those billions of profit they have taken if the need arises.....
 

timd354

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Bailout seems to be rather a poor choice of words when the government has been bogarting their profits way beyond the original bailout funds, to the tune of 75 billion plus. Only government could steal a companies profits for years and then when they have a bad quarter and no funds to fall back on, consider it a "bailout" to maybe return some of their stolen profits. They really need to end the GSE charade.
It is much more than $75 Billion....the government profit from Fannie and Freddie has been $187.5 billion thus far.
 

TJSum

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I was just going by what the article said, but Politico is a left wing hit site, so wouldn't surprise me if they got it wrong. "That brings their total remittances to the government to nearly $266 billion, a sum in excess of the $187.5 billion in aid they received to operate during the foreclosure crisis."
 

timd354

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I was just going by what the article said, but Politico is a left wing hit site, so wouldn't surprise me if they got it wrong. "That brings their total remittances to the government to nearly $266 billion, a sum in excess of the $187.5 billion in aid they received to operate during the foreclosure crisis."
I dunno, maybe I read it too quickly....in any case, the government has looted a whole lot of money from the shareholders of these two companies
 

Terrel L. Shields

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the government has looted a whole lot of money from the shareholders
The courts did not agree did they?
I am for bailing them out again...right after the top 40 executives are lined against a brick wall and shot as traitors.
 

timd354

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The courts did not agree did they?
I am for bailing them out again...right after the top 40 executives are lined against a brick wall and shot as traitors.
The courts agree with a lot of things that are not right, so what is your point...besides that, the ongoing lawsuits still have a long ways to go before everything is finally decided. It seems pretty likely that the government's justification for the profit sweeps (the gov't justified the profit sweeps by claiming that Fannie & Freddie would not be profitable in the foreseeable future just a few months before they both started spinning off multi-billion dollar profits, which was most likely a government lie - It is unproven exactly what the gov't knew at the time since the gov't has claimed executive privilege and refused to release any documents regarding that issue and eventually these documents are likely to come out and show that the gov't knew damn well that both GSE's were about to become highly profitable and simply decided to make a cash grab (which is why the gov't has fought like heck to not release the documents).

Regarding the top executives, none of the top executives from the pre-bubble days remain at either enterprise.
 

Terrel L. Shields

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Regarding the top executives, none of the top executives from the pre-bubble days remain at either enterprise.
So? Like they are not going down the same path of no money down, caution to the wind, insuring hedge fund bonds? What is new in this rodeo? The name of the clowns.
 

Restrain

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Courts so far have ruled against the shareholders in an attempt to claw back profits.
 
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