Fannie Mae-No Politics (FNMA)

[blownaccount9]

That is a pretty limited view of what really happened. The company was about to go under. No one had a spare $200B floating around to save Fannie. The terms were bad because this was a loan of last resort- it was this deal which obviously was crappy or complete wipeout. The terms were quite similar to other banks that were about to go under that received TARP funds other than the fact that these warrants have an insane 20 year term vs 10 for the other banks. I wouldn't be mad if the government let F&F buy back the warrants at current "fair value" like they did for other banks or perhaps give a better discount to fair value for the sheer number of years they have held the company. $3.6B would be current fair value.

The reality is that we do need to be forward looking and if it wasn't for those past actions the companies would have gone to 0. I think now all you can hope is that we find a way to get out of this purgatory and the sooner the better.