Replies to post #7897 on Fannie Mae Preferred S (FNMAS)

[feralcomprehension]

"Fannie Mae and Freddie Mac could be transformed into cooperatives...."

This is the sort of scenario where the prefs are safer than common, IMO. This arrangement could gut the common, but the prospectii of the preferred shares are immutable so long as the businesses aren't put into receivership.

Sure, they can bust up FnF and give away the bits, but they still owe me $25 per stub (FMCKJ)!

[taintedfud]

http://voices.washingtonpost.com/economy-watch/2009/04/former_treasury_official_relea.html

(4 years old)

Former Treasury Official Releases Tell-All

A former senior Treasury Department official is shedding light into the Bush administration's response to the financial crisis. In a 50 page report published as part of the Brookings Institution's Panel on Economic Activity, Philip Swagel, who was assistant secretary of the Treasury for economic policy from 2006 until January 20, 2009, argues that political and legal constraints hemmed in the Treasury's response more than many commentators have acknowledged.

He has criticism for the Paulson Treasury as well, though, writing that there was "chronic disorganization within the Treasury itself, and a broadly haphazard policy process within the Administration" including sometimes strained relations between the Treasury and Bush White House.

The report can be found here.

--Neil Irwin