According to my recollection, Fannie Mae was the only entity that existed since its founding by FDR in 1933 or '36. During the recession of the early 1970s, Wall Street was preparing to finesse the extraction of Fannie from the Treasury - it started with rumblings that a government supported institution that dominated the mortgage insurance business was a socialist invention and was monopolistic as well. Congress, in 1970, responded by authorizing the creation of Freddie Mac to engage in an identical model to Fannie and 'compete'. Soon thereafter, agitation was set to free Fannie from government control. Fannie was IPO'ed in 1973, and Freddie a year or two later.
That my recollection of the history.
As to conditions for consolidation. I believe that the rule of 50% ownership necessary for consolidating financial statements was instituted after 2008. Prior to that, it was an option. However, I was aware that, at 80% ownership, the acquiring company was compelled to consolidate, hence, at the time, the 79.9% limit to the confiscation did not trigger adding F&F's debt to the national debt.
I checked on your statement that 50% is the current threshold for consolidation and you are 100% correct. Your contention that failing to consolidate and include F&F debt as part of our national debt is a violation of law, stands. Imagine the worldwide turmoil that would ensue if it was revealed that our national debt is currently at $43Trillion! It was only $5Trillion in 2007. WOW!
Thank you for bringing these items to my attention.
