Fannie Mae (FNMA)

[navycmdr]

$Short $Takes: $A $Nice Gain for the $GSEs

A Reward From the Court



Have you looked at the share prices of Fannie Mae and Freddie Mac
of late? At press time Monday, Fannie common was trading for $1.89,
a few pennies below its yearly high. Its low: 39 cents. Freddie’s common
has similar metrics. Both of these mortgage giants — wildly profitable
since 2012 — are wards of the federal government, having been declared
insolvent back during the housing/subprime bust of 2008…

And in case you missed it, the District Court for the District of Columbia
mid-month ruled the Federal Housing Finance Agency had
" acted inappropriately when it installed a post-conservatorship
“net worth sweep,”

awarding Fannie/Freddie shareholders $612 million in damages. For a while,
billions of dollars in cash went into the coffers of the Treasury Department,
not the two companies…