Replies to post #466944 on Fannie Mae-No Politics (FNMA)

[pauljon4]

As the Geithner, Pukeson, Bernukeny article stated- the GSE"S were directed to buy $40 million of junk paper every month to bail out the TBTF banks.

[bcde]

"No, the bank settlement penalty funds will not go to the GSEs. The government was drug into TARP to rescue the banking system from collapse, and the GSEs were so loosy-goosy with their subprime mortgage paper purchases that they never bothered to find out they were buying a pig in a poke. Both TBTF banks and the GSEs share responsibility for the bailout mess, the rescue of liquidity by the Fed with Quantitative Easing at government's urging and the risk taken on by the taxpayer. "

YanksGhost,
Is this based on any legal/ethical principles or 4617(f) (rule of bureaucracy) ?