my remarks on fiderer’s top 3 points:
1. They suggest that the government is treating the GSEs unfairly in comparison to other large financial institutions.
in 2013, they wrote the same thing:
http://www.wsj.com/articles/SB10001424052702304011304579220154026887972
Finally, Congress should set in statute the dividend on Fannie and Freddie’s senior preferred stock—the taxpayers’ $187 billion bailout—at the original 10%. The dividend rate is currently determined by political appointees at the Treasury and the Federal Housing Finance Agency. This authority belongs in Congress. After Fannie and Freddie meet capital requirements, pay the government for the privilege of having a guarantee, and pay the 10% dividends, then any excess capital should go toward retiring the taxpayers’ senior preferred stock.
2. They undermine the legitimacy of the Third Amendment Sweep.
3. They recommend reversing the Third Amendment Sweep, and returning all cash, above and beyond the preset 10% dividends, to repurchase the senior preferred stock.
okay, yeah david fiderer is right.