Fannie Mae-No Politics (FNMA)

[big-yank]

A very similar scenario unraveled with the General Motors bailout and no adverse legal decision questioned the government assuming an equity position in the company. In the AIG case, Judge Wheeler assessed no damages because without the government's assistance, the surviving equity shares would have been worthless.

I fail to see where the GSEs were treated all that much differently than others given bailouts. The banks were given fewer limitations and conditions, not because of favoritism, but because of a higher level of regulation and an existing mechanism under FDIC to dispense with any subsequent insolvency.

The "we were hard done by" lament from GSE shareholders is unjustified and, frankly, very tiresome.