Day: February 23, 2015

Thus, the preferred and common shareholders of Fannie Mae and Freddie Mac did not benefit by Treasury’s actions. They effectively lost their investments.   http://fhfaoig.gov/Content/Files/FannieMaeandFreddieMac-WheretheTaxpayersMoneyWent.pdf

Losers: Stockholders According to the PSPAs, no dividends can be paid to preferred or common shareholders of the Enterprises (with the exception of Treasury) without Treasury’s approval or until Treasury…

The Acting FHFA Director noted in a September 2011 speech: “It ought to be clear to everyone at this point, given the Enterprises’ losses since being placed into conservatorship and…

well, he thinks correctly that nothing will be done with Fannie and Freddie for the foreseeable future but fails markedly to see the light at the end of the tunnel…