Replies to post #350576 on Fannie Mae-No Politics (FNMA)

[Zargis]

I should also clarify, with GM equity was not part of the deal until the government bailout of GM was to be lost in bankruptcy; whereby the deal was changed since GM owed billions still and tried to shed it as a freebee.

Normally they would have repaid back over a period of years had bankruptcy not occurred and incurred another "bailout" on the same company.

Be well,
-Zargis

[big-yank]

Actually, GM via warrant sales, paid back all but about $10 B of their approx. $50 B bailout. I have little respect for their failure to pay back the balance, although the government made the call to excuse the balance for some rationale I will never embrace.

I believe previous bailouts at "the New Chrysler" in the Iacocca days and the Boeing collapse involved some equity backstop, but I wouldn't bet my life on it.