Fannie Mae-No Politics (FNMA)

[Mikey Mike]

Found it...so yeah Treasure has made both statements that the bailout is a loan and now an investment...

Taxpayer Protection. Any time the government stands behind a loan, even indirectly, it takes on
some degree of risk. While the government can charge market participants an insurance
premium for accepting that risk, pricing risk properly can be difficult. If the government does
not charge a fair price, it may encourage excessive risk-taking and increase the likelihood that
the taxpayer will be forced to bear the cost of the government’s losses. Political pressure to
lower the price of government support increases the odds that the government will misprice risk
and put taxpayers at risk. Requiring private capital to come ahead of government guarantees or
providing a way to ensure taxpayer losses are repaid through future assessments, such as higher
fees, may mitigate these risks

http://www.treasury.gov/initiatives/Documents/Reforming%20America%27s%20Housing%20Finance%20Market.pdf

If Treasury has already received $1 billion in senior preferred stock, how can you say that no investment
has been made yet?
The companies each issued $1 billion in senior preferred stock to Treasury in connection with Treasury's
commitment to maintain a positive net worth in the GSE. No taxpayer money was spent to receive this stock.

http://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/2008-9-11_SPSPA_FAQ_508.pdf