Fannie Mae-No Politics (FNMA)

[HappyAlways]

AIG won the court case some years ago. The argument was that AIG was not given the chance to issue new shares in the market to rescue the company, before AIG was taken over by USG. Fannie and Freddie were in the same situation, but worse. AIG repaid a portion of the loan and was released soon (and substantially diluted). Fannie and Freddie had repaid in excess of $110B according to the court oral argument. Total repayments was $310B in 2020 (from CBO) and the Liquidity Preference is increased to $220B. What a highway robbery !

Imagine that you were lent $181K in 2009, had repaid $310K upto 2020 and your loan balance is increased to $220K. In the coming Jury Trial, our lawyers should show the Jurors a foil as follows:

In 2009 - loan $189B at 10% interest (original contract)
In 2012 - loan balance was $191B. Repayments of $141B in 2012 alone (was counted as dividend. Otherwise, 73% interest rate is illegal. So, they changed to call it dividend.)
In 2020 - total repayments was $310B (from CBO). Loan balance stands at $191B.
In 2023 - loan amount is increased to $240B