Fannie Mae-No Politics (FNMA)

[RickNagra]

Very nice find. I did not know that Mnuchin and Paulson were business partners in the IndyMac bailout. Both made a huge amount once the bank was turned around in about one year. And Paulson owns a huge stake in Fannie and Freddie. We are so golden on this one.

Mnuchin’s partners in the IndyMac deal included his former boss, the billionaire investor George Soros, and John Paulson, who made a fortune shorting the housing market and is now a prominent Trump supporter and adviser. For his $400 million initial investment in 2009, Paulson earned $551 million in dividends and was expected to make another $788 million from the sale to CIT, he told investors in a 2014 letter.
Given the eye-popping returns, the FDIC loss-sharing agreement has been criticized as too generous. Fawer, the former OneWest vice chairman, noted that the bidding group prevailed in a competitive auction process.