Fannie Mae-No Politics (FNMA)

[contrarian bull]

Any pure "protect taxpayer" suits yet?

Thinking about the fact that the goal of the conservancy was to protect taxpayers, and that refusing to let fannie and freddie pay back their loans when they can, and keeping their net worth at zero - maximizes the risk to the taxpayer.

Yeah - we know the INCOME for the taxpayer is higher with the net worth sweep, but income is not the purpose of the conservancy. It's reducing taxpayer risk. It seems risk would be reduced if fannie and freddie were allowed to pay back the draws instead of dishing out profits to their investors (Treasury)

In a law suit I doubt the government would win saying "Yeah this puts taxpayers at higher risk - but we get to take soooo much more money from these private companies that it is better for us".

I suppose the problem is - who has been harmed when they are kept at risk? So far taxpayers have only had to dish out $4 Billion or so for this since f&f became profitable. Each taxpayer was only harmed by maybe 15 bucks for the last draw...

But - it seems that since the courts don't care about a private company, maybe they would care about taxpayers being at risk and paying for draws.