Fannie Mae (FNMA)

[Letgoofmyfannie]

Intriguing Post from Absurd_Trader

on the Google Board:

Absurd_Trader
5:12 AM (3 hours ago)
The Federal Reserve does not want them to because it would run counter to their quantitative easing program. The companies hold a combined $1 trillion in their own securities on their balance sheets. Given where interest rates are, all of these securities are trading with unrealized gains and could be sold into the market at a profit.

In effect, the Fed is using Fannie and Freddie as part of their quantitative easing and low interest rate policy. If they were allowed to sell the portfolios, it would free $30 to $50 billion in capital to pay off their "prison bitch" credit lines. Sure would be a great way to limit taxpayer exposure. Oh wait, the Fed is putting the taxpayer at gargantuan interest rate risk from their quantitative easing program? You don't say?

The government's argument that FHFA acts independently of the Fed and the Treasury is a farce.