Replies to post #687539 on Fannie Mae-No Politics (FNMA)

[HappyAlways]

You are the first person to point out a new reason - China. Bravo.

I wish I knew that some years ago.

[Fnmaman]

Interesting!? How about Saudis? Is China holding common or prefered or both? if it is prefered, then-Gov can cancel them. Maybe that is what is called National security by the Gov.

[Guido2]

Few years ago, it was explained that the main reason for conservatorship in 2008 was that China, Russia and other countries were major holders of MBS issued by Fannie and Freddie. Hank Paulson wanted to reassure them that their investment was safe. Federal Reserve has taken over the role of these foreign countries. Someone here explained that the Fed is owned by TBTF banks. It follows that the continued conservatorship is in the interest of these banks.

I don't recall ever reading that China was an investor in either the commons or preferred. Not saying they weren't, but would like a source that confirms this.

There is a Congressional Report from 2009 that supports some of what I have written above. I am having trouble posting the link to that pdf file. Do a Google search for "China and the Global Financial Crisis: Implications".

[Donotunderstand]

could be

my recollection was CHINA (and DJT's buddies in Russia) held a ton - but that was likely (as I recall) MBS paper - bonds - debt

small and regional banks held a ton and a ton more of JPS (F and F were the ONLY JPS a bank could put more than 5% of reserves in !! and some had 50% in JPS !!! ----- Paulson even spoke to that - said "they would be helped" and then our BOD member - BLAIR (is that her name) - took over all those banks !!!!

all a bad scene

And it did not need to be

there was a way to calm down markets and foreign and US bond holders and not screw JPS and common for 12-13 years

reasons why we are stuck - are gone IMO

[jog49]

"But I sure don't know why they won't release us , 2 parties. 4 presidents and administration's, 13 years, documented lies by so many in the beginning of take over, uncaring media, and blind eyes by so many."

Simply, the TBTFs want their books of business. They are like hyenas on the African plains and F&F are the prey. Once the prey is brought down all of them will fight among themselves for a share. And the roots of the TBTFs go to the core of this government; as in rotten to the core.