Fannie Mae-No Politics (FNMA)

[jog49]

"You see, it was the fact that TBTF banks needed more market share that caused them to create the facade of a spiral; which needed liquidity and forced their bad loans on fannie and freddie and saved their bacon as they crushed the community banks and their investments in "preferred" stock that made up the core capital of small town, usa banks."

I'm willing to bet good money that the TBTF banks/lenders ended up making money on their rotten deals with Fannie and Freddie. Sure, they had to take back some of the bad paper and were quick to settle the suits with the government for big money (some were in the billions). I suspect every one of those settlements was pre-arranged to appear remorseful. Still, when the ledgers are viewed, every damn one of them came out smelling pretty good and in the plus column.