Fannie Mae-No Politics (FNMA)

[YanksGhost]

No, the bank settlement penalty funds will not go to the GSEs. The government was drug into TARP to rescue the banking system from collapse, and the GSEs were so loosy-goosy with their subprime mortgage paper purchases that they never bothered to find out they were buying a pig in a poke. Both TBTF banks and the GSEs share responsibility for the bailout mess, the rescue of liquidity by the Fed with Quantitative Easing at government's urging and the risk taken on by the taxpayer.