Fannie Mae-No Politics (FNMA)

[dpsimswm]

Why did Treasury and FHFA allow Fannie and Freddie to trade on the NYSE from Sept 2008 to Jun 2010 if they planned a shareholder wipe out? http://bit.ly/1tkD2Aa

Why did @USTreasury + @FHFA allow $FNMA + $FMCC to trade on @nyse from Sep08 to Jun10 if they planned a wipe out? http://t.co/p4EbY4uds5

— AccoFi (@AccoFi_com) December 31, 2014

I think the answer to this question is that they did not originally have this plan. During that period, banks and special interests went to Congress and lobbied people like Corker and Warner. They tried to convince them to destroy the GSEs. The result was several idiotic attempts at legislation and a change in direction.

Massive amounts of losses were mandated to build the case at destroying the companies.