Fannie Mae-No Politics (FNMA)

[401kobessive]

The GSEs had value and were not in default when taken into Conservatorship. Otherwise, the FHFA would have no choice but to put them into Receivership.

The shares were allowed to continue trading. They had value so they had no choice but to allow them to continue to trade and still does today.

No company making profits can be taken by the Government.

Shareholders retain legal rights in Conservatorship.

A shareholders rights are the same no matter when you purchased the stock.

FNMA Conservator has a legal obligation to conserve, protect, and release to the shareholders.

There is no precedent for what has been done to FNMA shareholders.

The Government can not take property without paying full value to the owner.

What example would the Government leave for future investors in mortgages if they defaulted on the original agreement in 2008? Lack of Trust and risk premiums would make mortgages affordable to most.

These points were made clearly by Professor Richard Epstein. I enjoyed watching it, and thank the person that posted it.

http://www.restorefanniemae.us/