Replies to post #210738 on Fannie Mae-No Politics (FNMA)

[jarenawer]

You don't know the difference between receivership and conservatorship so knock other door...

Too many years lost poor devil.

[Dollars1]

Did you ever work for or with Fannie or Freddie at that time?

[chessmaster315]

Your position is echoed by the current administration:
Fannie shareholders do not have any equity so they should give it to us (the government).

This reminds me of a used car salesman telling the customer his old jalopy has no value so he should just give it away, preferably to the dealer.

Then, the dealer cleans it up a bit and tries to resell it for $4000 more than they paid for it, telling everyone its a cream puff only driven to church on Sunday.

If fannie equity is so worthless, why does the government fight shareholders tooth and nail for the equity? Why does the government not just say, "ok shareholders, have at it. We dont want the negative equity on our books, put it on yours, instead."

No. The government wants sharholders to bear any negative equity, but confiscate any profits. They can not have it both ways. If the government truly took over fannie, then they must assume the debts of fannie. They did not want to do that. Thus the reason for conservatorship.

The issue is "who gets the profits", not whether their is equity or not. There IS equity, and positive equity...Fannie Mae is a money making machine, that has produced the highest recorded profit for a company, EVER. And you are trying to tell us this is worthless, just like the government, so you can buy it for nothing. NOPE. NOT buying it. This "old jalopy" fannie is worth billions of dollars, in no small part because it makes billions of dollars.
Further, Im not buying the arguement that fannie owes ALL its future profits to taxpayers because taxpayers footed the bill. FALSE!! Taxpayers have not footed the bill for fannie bailout. Taxpayers profitted 10 billion with the fannie bailout, while fannie shareholders, from 2008, watched their shares plunge from 60 dollars a share to 26 cents, losing 99 per cent of their value and shareholders lost 100 percent of their dividends. Shareholders did/will continue to take the risk, and shareholders, who own fannie mae, not taxpayers, deserve the profits. Any taxpayer who wants to share fannie profits can do so by purchasing fannie shares. Last I looked they are available for a little under 4.00 per share.