I believe that the monies are being paid back to satisfy the terms
that FnF went under... and it would make it seem like they are being punished for their wrong doing. However, if you have followed a bit of what I posted, the banks are at fault NOT FnF.
The move by the government was done to satisfy the masses and justify the TARP program, because it would make it seem like the government was saving the public and securing the safety of the banks. Of course, some banks had to be made examples of... and they collapsed.
Shock and Awe have amazing effects if employed properly.
Now, FHFA comes in and saves FnF by filing a suit on behalf of the two against (guess who...) the banks. Hmmm.... Now the banks have written off their bad loans, which they under-handedly gave to FnF to bundle as mortgage securities... which carried the subprime loans, which of course, collapsed.
FnF will win their suit against the banks. The banks will grumble but pay back the bad loans which already have been written off for tax purposes. FnF gets the get out of jail card and moves along. And no one really knows wtf happened... except that the banks paid back FnF for some bad loans that they gave them but that will end at that. Too many details to cover each bank and who was wrong.
The TARP funding program will also be forgotten and the reasons for it... as people want to leave the past behind and move on.
The Treasury gets the monies that was used to pay off the bad loans by the banks that gave FnF those and thus the government will be satisfied.
Everyone wins... except the people who get screwed again because someone will have to pay for the cost of all this and what better way to give back than in the form of taxes. And everyone knows that taxes are so complicated in itself, we don't even know what we are paying taxes for any more... we just pay them.
DRAGON~52
