Replies to post #332465 on Fannie Mae-No Politics (FNMA)

[955]

Taxpayers are still on the hook to bail out TBTF banks. Is that not PUBLIC LOSSES? Shareholders own stock in the TBTF banks. Do they not earn PRIVATE GAINS? PRIVATE GAINS, PUBLIC LOSSES.........Hmmmmmmmm. Hank Paulson, Bob Corker, President Obama all stated Fannie & Freddie have broken business models, business models consisting of PRIVATE GAINS and PUBLIC LOSSES. Is that not THE SAME business model TBTF banks have? Yet, Fannie & Freddie MUST be dismantled because their 'broken' business models are too much risk to taxpayers. Yet, what about business models of TBTF banks???

Schizophrenic Gov once again, wanting it BOTH ways.

"Now in the US, the banks are even larger than they were pre-2008. They are not only too big to fail, they are too big to manage and possibly too big to exist. The old phrase was, 'Main Street will never again bail out Wall Street.'
"That's a noble claim, but the evidence suggests that in the UK and the US, and also in the eurozone, where several countries simply have broken banking systems, the taxpayers are still on the hook. Very little has been done, and the day of reckoning is potentially around the corner."

[big-yank]

The GSEs are, if anything even larger than life examples of TBTF enterprises. Worried about banks? Crapo, Corker and many others are worried about Fannie & Freddie.

Size matters for all financial market drivers, not just banks.