Just sent this to David Shipley who wrote a wonderful piece today in Bloomberg:
David,
You either have done very little objective research and/or you have a vested interest in seeing the continuation of what is likely the largest 5th amendment taking EVER.
It has been established via publicly available information that Fannie and Freddie did not cause the 2008 financial crises. Rather, their loan loss ratios were the LOWEST in the industry AND they had adequate capital to cover the losses - in other words, their business model was sound and tax payers were never on the hook. Sure, it didn't look that way AFTER they were put in cship and Treasury and FHFA booked unwarranted and unprecedented loan loss provisions which created the illusion that the twins needed a bailout - but that charade ended in 2012 when the housing market recovered and FHFA had to reverse the loss provisions and the twins returned to profitability. Oh, but wait, knowing the twins were about to become massively profitable, the T/FHFA continued their fraudulent behavior by enacting the Net Worth Sweep (NWS) to avoid the now FULLY DISCREDITED "death spiral" justification.
So now we wait to hear the en banc decision by the 5th Circuit Court regarding the legality of the NWS - which you believe is so totally justified as to warrant continuation - shareholder rights be damned. Are you wishing they decide in favor of the defendants? Well, then, be careful what you wish for because your employer might be the next target of our government ignoring the constitution and taking what ever they please without compensation to the victims. Meanwhile, maybe you should sharpen your research skills by taking a long sabbatical in a banana republic and enjoy life in a country without the rule of law. Cheers,
