Fannie Mae Preferred S (FNMAS)

[Letgoofmyfannie]

How is Uncle Sam any better than loan sharks he regulates?

[A tip of the hat to "xyz" found posted there too:]

"" 8:54 am November 10, 2013
xyz wrote:

Net bailout loan was 137 billion. So far USG/taxpayers have profited to the extent of 48 billion on investment of 137 billion by charging 10% usary interest. It is only tip of iceberg. When FHFA terminates c’ship USG/taxpyaers will receive tens of billions in taxes.

Some have hinted/suspected that FnF were forced to take higher loan reservation loss (234 biliion as compared to125 billion actual loss) so as to burden FnF with 10% usary loan and sink them to the bottom.

How is Uncle Sam any better than loan sharks he regulates?

Then the question is why did FnF barrow more than the actual loss at usary interest rates. How did conservator allow this when conservator is entrusted with duty of protecting FnF. It is amazing that FnF were able to survive despite all the efforts to smother them. An independent investigation could reveal the real truth.

Can ordinary citizens get opportunity to invest at 10% interest on secured loan? Since crisis the average return for ordinary citizens is less than 1%.

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from Perry lawsuit:
In 2012, it became clear that the Companies’ financial position was not as bad as had been feared in 2008. Among other things, their actual loan losses were far less than their anticipated losses. For example, between the beginning of 2007 and the second quarter of 2012, the Companies had placed more than $234 billion in reserve to absorb anticipated loan losses. But over that same time period, the Companies had realized loan losses of just over $125 billion. In other words, the Companies had overstated their projected loan losses by $109 billion which was artificially weighing down their net worth.
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