Replies to post #79947 on Fannie Mae-No Politics (FNMA)

[stockprofitter]

Corker and Warner were two sponsors from a bipartisan bill introduced earlier this year aiming to jumpstart GSE reform by preventing Congress from using any increase in certain fees charged by Fannie and Freddie to offset other government spending, and that would have prevented Treasury from selling its preferred shares without an OK from Congress.

Congressional approval of GSE reform may take several years, Seiberg added.

“We expect the bill to change over time as that is what happens when legislation is debated and subjected to multiple markups. And we continue to believe that GSE reform may not cross the finish line until after the next president is inaugurated,” Seiberg wrote.

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[stockprofitter]

if you use common sense you can not pay back 350B on a 185B loan.
that is outright illegal not to mention criminal.

throw in the common warrants and the senior preferred shares and the government has just walked away with 10,000 percent on their investment.

it is kind of win, win tho. ;-)