What Happened
Fannie Mae and Freddie Mac are the two largest financial institutions in America. They guarantee over $5 trillion in mortgages — roughly half of all US home loans. In September 2008, the government placed them into “conservatorship,” ostensibly to stabilize the housing market during the financial crisis.
During the crisis, Fannie and Freddie drew roughly $190 billion from Treasury. The media called it a “bailout.” But unlike every other bailed-out company — AIG, GM, the banks — the government never let Fannie and Freddie repay shareholders and exit conservatorship.
Instead, in August 2012, Treasury secretly amended the agreement to sweep 100% of the companies' profits — forever. This “Net Worth Sweep” was implemented right as Fannie and Freddie were becoming massively profitable. They have now paid Treasury over $300 billion — far more than the $190 billion drawn. Shareholders have received nothing.
This is not a conspiracy theory. It is documented in court filings, government memos, and Congressional testimony. The government took $300+ billion from shareholders of the two largest financial institutions in America, and nobody stopped it.
Timeline
Conservatorship
governmentFHFA places Fannie Mae and Freddie Mac into conservatorship. Treasury commits $200B in support via Senior Preferred Stock Purchase Agreements (PSPAs).
GSEs Draw ~$190B from Treasury
governmentFannie and Freddie draw on the Treasury commitment during the housing crisis. Media frames them as "bailout recipients" despite being profitable enterprises forced into conservatorship.
The Net Worth Sweep (Third Amendment)
governmentTreasury and FHFA secretly amend the PSPAs to sweep 100% of GSE profits to Treasury --- forever. This retroactively ensures shareholders can never be repaid, despite the GSEs becoming massively profitable.
GSEs Become Cash Machines
marketFannie and Freddie report record profits. They have now paid back far more than they drew from Treasury. Under the Net Worth Sweep, all profits go straight to the government.
Perry Capital v. Lew Filed
legalHedge fund Perry Capital files suit challenging the Net Worth Sweep as an illegal taking of shareholder property. The first major legal challenge.
Glen Starts Buying Common Shares
personalGlen Bradford begins buying Fannie Mae and Freddie Mac common shares. Starts writing the first Fanniegate book. Around 2016 he sells all common shares and converts his entire position into junior preferred shares.
Fairholme v. FHFA Filed
legalBruce Berkowitz's Fairholme Fund files suit. Multiple shareholder lawsuits now challenging the constitutionality of the Net Worth Sweep.
Fanniegate Book 1 Published
personalGlen publishes the first Fanniegate book: "The first sound they'll hear is their heads hitting the floor." Begins the 8-year documentation project.
Perry Capital Dismissed (D.C. Circuit)
legalD.C. Circuit rules HERA bars judicial review of FHFA's actions. A devastating setback, but the fight continues in other courts.
Collins v. Mnuchin (Fifth Circuit)
legalFifth Circuit rules the FHFA's structure is unconstitutional --- the single-director removable only for cause violates separation of powers. Shareholders win a major constitutional argument.
Treasury Allows Capital Retention
governmentTreasury amends the PSPAs to allow Fannie and Freddie to retain $25B and $20B respectively. First sign of movement toward recapitalization.
Collins v. Yellen (Supreme Court)
legalSupreme Court affirms FHFA structure was unconstitutional but limits the remedy. Sends the case back for further proceedings. Mixed result --- the constitutional question is settled but shareholders need more.
Lamberth Trial Begins
legalJudge Lamberth presides over trial in the D.C. shareholder cases. Key discovery documents reveal government officials knew the Net Worth Sweep was designed to prevent shareholders from ever being repaid.
Lamberth Rules Against Shareholders
legalJudge Lamberth rules for the government, finding no breach of contract or fiduciary duty. Shareholders appeal. The fight enters its second decade.
Victory Lap --- Book 8 Published
personalGlen publishes the final Fanniegate book: "Recap and Release." After a decade of writing, the 8-book series is complete.
Bessent Confirmed as Treasury Secretary
governmentScott Bessent, who has publicly discussed GSE recapitalization, is confirmed as Treasury Secretary. Shareholders see the most favorable political environment in over a decade.
Recap & Release on the Table
governmentWith a sympathetic Treasury Secretary, bipartisan interest in housing reform, and GSEs sitting on massive retained earnings, recapitalization and release is finally a real possibility. Total shareholder payments to Treasury now exceed $300B --- far more than the ~$190B drawn.
Executive Order: Promoting Access to Mortgage Credit
governmentPresident Trump signs an executive order directing FHFA, CFPB, Federal Reserve, FDIC, OCC, NCUA, HUD, and VA to reduce regulatory burdens on mortgage lending --- including capital and liquidity requirements. Same day, Commerce Secretary Lutnick meets NEC Director Hassett at the White House. Lutnick has advocated for the 'largest IPO in history' for Fannie and Freddie.
The 8 Books
One book per year, every year, for 8 years. The definitive chronicle.
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Key Blog Posts
Selected posts from the archive, organized by theme.
The Legal Battle
Key posts tracking the lawsuits, court rulings, and legal strategy.
The Accounting Fraud
Posts documenting how the Net Worth Sweep was engineered and executed.
Personal Stake
Glen's own journey as a shareholder with his entire net worth on the line.
Key Predictions
Major calls and predictions Glen made along the way.
Current Status
As of 2025, Treasury Secretary Scott Bessent has publicly discussed GSE recapitalization and release. Fannie and Freddie have paid Treasury over $300 billion — far exceeding the ~$190 billion drawn during the crisis. Retained earnings are building. The political environment is the most favorable it has been in over a decade.
After 10+ years of litigation, 8 books, and thousands of blog posts, the endgame may finally be approaching.
Key Milestones
Sixteen years of conservatorship. Here are the moments that defined the fight.
Conservatorship Begins
FHFA places Fannie Mae and Freddie Mac into conservatorship during the financial crisis. Treasury injects capital through Senior Preferred Stock Purchase Agreements with a 10% dividend. Shareholders are told this is temporary — a bridge to stability.
The Net Worth Sweep
Treasury and FHFA secretly sign the Third Amendment, changing the dividend from 10% to 100% of quarterly net worth — right as both companies return to massive profitability. Internal documents later reveal this was planned in advance.
Lawsuits Filed
Shareholders across the country file dozens of lawsuits challenging the Net Worth Sweep. Perry Capital, Fairholme Funds, and individual investors take on the US government. The legal battle that will span over a decade begins.
Hidden Documents Surface
Discovery in the lawsuits reveals internal government memos and emails showing that Treasury officials knew Fannie and Freddie would return to profitability before implementing the Sweep. The “death spiral” narrative collapses.
Collins v. Yellen
The Supreme Court rules that FHFA's single-director structure is unconstitutional. While the Court does not unwind the Sweep, it remands the case for further proceedings on whether shareholders were harmed by actions taken under the unconstitutional structure.
Capital Reserves Build
After a letter agreement suspends the Net Worth Sweep, Fannie and Freddie begin retaining earnings and building capital reserves. Combined retained earnings grow past $100 billion. The companies prove they can self-capitalize without taxpayer support.
New Administration, New Hope
Treasury Secretary Scott Bessent publicly discusses GSE recapitalization and release. The political environment shifts to the most favorable it has been in over a decade. For the first time, privatization has high-level executive branch support.
The Endgame Approaches
Retained earnings continue to build. Treasury restructuring discussions advance. The path to recap and release is clearer than it has ever been. After 16+ years, shareholders who held through everything may finally see their investment thesis validated.
The Community
This fight was never one person. It is thousands of regular people who saw an injustice and refused to look away.
For over a decade, a community of Fannie Mae and Freddie Mac shareholders has persisted through every setback, every adverse court ruling, every misleading headline. These are not hedge fund managers or Wall Street insiders. They are teachers, engineers, retirees, small business owners, veterans — regular Americans who put their savings into publicly traded securities and watched the government take their property.
They organized on SeekingAlpha, where hundreds of articles and thousands of comments built the most comprehensive public record of the Fanniegate saga anywhere on the internet. They connected on X/Twitter, sharing court filings, analyzing government documents, and holding each other accountable. They filed amicus briefs, attended oral arguments, wrote letters to their representatives, and refused to be silent.
The legal battles alone tell the story of their determination — Perry Capital, Fairholme, Collins v. Yellen, Berkley v. FHFA, and dozens more. Each case funded by shareholders who believed that property rights still mean something in America. Each case pushing the needle, building precedent, and keeping the pressure on.
What makes this community remarkable is not just the financial conviction — it is the moral conviction. These shareholders believe in a simple principle: if the government takes your property, it should have to give it back. The Net Worth Sweep was not a policy disagreement. It was the largest taking of private property through financial engineering in American history.
To everyone who has held through the darkness, who posted “one more day” when the courts ruled against us, who bought more when the world called it crazy — this page is for you. The endgame is approaching, and you earned it.
Glen's Position
I own Fannie Mae and Freddie Mac junior preferred shares — FNMAS, FMCKJ, and the full basket. I started buying common shares in 2014, then sold them all around 2016 and converted my entire position into junior preferred. My entire net worth is riding on this.
“I don't respect people that recommend things they themselves do not own.”
View full positionsTools Glen Actually Uses
Frequently Asked Questions
Q: What is the Net Worth Sweep?
The Net Worth Sweep is the August 2012 amendment (Third Amendment) to the Preferred Stock Purchase Agreements that changed the dividend owed by Fannie Mae and Freddie Mac to the Treasury from a fixed 10% to 100% of their quarterly net worth. This was implemented right as both companies were becoming massively profitable, sweeping all profits to the government and leaving shareholders with nothing.
Q: What are Fannie Mae preferred shares?
Fannie Mae preferred shares are securities issued by the Federal National Mortgage Association that sit above common stock in the capital structure. Junior preferred shares like FNMAS have stated par values (typically $25 or $50) and were paying dividends before conservatorship suspended them in 2008. Many investors believe these shares will be recapitalized at or near par value when the company exits conservatorship.
Q: Will Fannie and Freddie be privatized?
As of 2025, Treasury Secretary Scott Bessent has publicly discussed GSE recapitalization and release from conservatorship. Fannie and Freddie have paid Treasury over $300 billion, retained earnings are building, and the political environment is the most favorable it has been in over a decade. While no official timeline has been set, the endgame for privatization may finally be approaching after more than 16 years of conservatorship.
Q: What is the Berkley v. FHFA case?
Berkley v. FHFA is a lawsuit brought by GSE shareholders challenging the constitutionality and legality of the Net Worth Sweep. The case argues that the FHFA exceeded its statutory authority as conservator by agreeing to the Third Amendment, which swept 100% of Fannie Mae and Freddie Mac profits to the Treasury. It is one of several legal challenges that have worked their way through the federal court system.
Q: What are junior preferred shares and why do they matter?
Junior preferred shares are a class of preferred stock that sits above common equity but below senior preferred stock in the capital structure. Fannie Mae and Freddie Mac issued dozens of series of junior preferred shares — such as FNMAS, FMCKJ, and FMCCS — with stated par values of $25 or $50 per share. Before conservatorship, these paid regular dividends. In a recap and release scenario, junior preferred shareholders stand to have their par values honored and dividends restored, representing significant upside from current trading prices.
Q: Who benefits if Fannie and Freddie are privatized?
Privatization would benefit multiple stakeholders. Shareholders — both common and preferred — would see the value of their holdings recognized after over 16 years in limbo. Taxpayers benefit because the government has already been repaid many times over, and private capital would replace the implicit government guarantee. Homebuyers benefit because privatized, well-capitalized companies can serve the mortgage market more efficiently. The broader economy benefits from removing uncertainty around two institutions that guarantee roughly half of all US mortgages.
Q: What did the courts rule in the GSE cases?
GSE litigation has produced mixed but increasingly favorable results. In Collins v. Yellen (2021), the Supreme Court ruled that FHFA's structure was unconstitutional because its director could only be removed for cause, but stopped short of unwinding the Net Worth Sweep. However, the Court remanded the case for further proceedings on whether shareholders were harmed by actions taken under the unconstitutional structure. Multiple other cases remain active in federal courts, and the legal landscape continues to evolve in shareholders' favor.
Q: How much have Fannie and Freddie paid the Treasury?
Combined, Fannie Mae and Freddie Mac have paid the US Treasury over $300 billion in dividends under the Net Worth Sweep — far exceeding the approximately $190 billion they drew during the 2008 financial crisis. Despite this massive overpayment, the Treasury's senior preferred stock liquidation preference has not been reduced, meaning the government claims it is still owed the full amount. No other bailed-out company in American history has been treated this way.
Q: What would privatization mean for housing?
Privatization would mean Fannie Mae and Freddie Mac operate as fully capitalized private companies that guarantee mortgages without an explicit government backstop. This would actually strengthen the housing market by ensuring the companies have real capital buffers to absorb losses. The 30-year fixed-rate mortgage would continue to exist — it existed before conservatorship and would exist after. Well-capitalized GSEs are better for homeowners, lenders, and the broader financial system.
Q: Why are investors still holding after 15+ years?
Investors continue to hold because the fundamental thesis remains intact and has only strengthened over time. Fannie Mae and Freddie Mac are enormously profitable companies that have repaid far more than they drew. The legal and political momentum has shifted decisively in shareholders' favor. Junior preferred shares trade at significant discounts to par value, representing substantial upside in a recap and release scenario. For long-term investors who understand the value, the risk-reward has never been more compelling.
Q: What role does FHFA play?
The Federal Housing Finance Agency (FHFA) is the independent regulatory agency that serves as conservator of Fannie Mae and Freddie Mac. As conservator, FHFA has broad authority over the companies' operations and was the entity that agreed to the Net Worth Sweep with Treasury. The FHFA director is appointed by the President, and the agency's role would be central to any recap and release plan. Under different administrations, FHFA has taken markedly different approaches to the question of ending conservatorship.
Q: What is the difference between FNMAS, FMCKJ, and FMCCS?
FNMAS, FMCKJ, and FMCCS are ticker symbols for different series of junior preferred shares issued by Fannie Mae and Freddie Mac. FNMAS is Fannie Mae's Series S preferred stock with a $25 par value. FMCKJ is Freddie Mac's Series Z preferred stock, also with a $25 par value. FMCCS is Freddie Mac's Series S preferred stock with a $50 par value. Each series has slightly different terms, coupon rates, and trading volumes, but all represent the same fundamental bet on recap and release. There are over 30 different series across both companies.
Q: What happens to preferred shareholders in a recap and release?
In a recap and release scenario, preferred shareholders would likely see their shares honored at or near par value with dividend payments restored. The exact treatment depends on how Treasury restructures its senior preferred position and how the companies raise new capital. Historical precedent from other conservatorships (like AIG) suggests that preferred shareholders should be made whole before common shareholders see upside. The most likely path involves converting Treasury's senior preferred stake, restoring junior preferred dividends, and raising new equity capital through a public offering.
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Glen Says: Done Deal
A diamond hands conviction game. Hold your position through waves of FUD, fake sell buttons, and market chaos. Glen says it's a done deal — do you believe him? How long can you hold?
GLEN SAYS: DONE DEAL
A Diamond Hands Conviction Game
Hold the HOLD button. Don't click SELL. Survive the FUD. Glen says it's a done deal — do you believe him?
Fannie Mae & Freddie Mac have paid $301B+ to Treasury — far exceeding the $191B bailout
HOLD button = stay in
SELL buttons = game over
Gold quotes = Glen's wisdom
Release HOLD 3s = panic sell
Preferred Shares vs. Common Shares
Two sides of the same trade. Play as a preferred shareholder defending dividends from the Net Worth Sweep, or as a common shareholder racing to accumulate shares before recapitalization. Challenge your friends — preferred vs. common.
Preferred Share Defender
Defend your preferred shares. Catch dividend coins, deflect Net Worth Sweep enemies. Survive the Third Amendment waves. Power-ups: Legal Victory, Dividend Boost, Recapitalization Shield.
Preferred Share Defender
Defend your junior preferred shares (FNMAS, FMCKJ, FNMAT) from the Net Worth Sweep.
Since 2012, junior preferred shareholders have been fighting the Third Amendment that swept all GSE profits to the Treasury. Catch dividend coins, deflect sweeps & government inaction, and protect your junior preferred investment.
Junior preferred shares like FNMAS, FMCKJ, and FNMAT once paid quarterly dividends before the 2012 Net Worth Sweep.
$ Coins = dividends
SWEEP/DEM/DELAY = enemies
Shield deflects sweeps
GLEN = 2X dividends
TIM = clear all enemies
TRUMP = recap shield
BESS = slow enemies
LTNK = coin rush
PULTE = risky clear (70/30)
CALB = 5 auto-deflects
MCKRN = freeze enemies
LUKE = 2X coin value
Common Share Rally
Side-scrolling runner on a stock chart. Collect FNMA/FMCC share tokens, dodge dilution bombs and short seller bears. Ride the recapitalization catalyst waves for bonus shares.
Interactive Tools & Games
Learn by doing. Test your knowledge, model scenarios, and master every GSE ticker.
Net Worth Sweep Tracker
Animated visualization of the $301B swept from Fannie & Freddie. See it counted dollar by dollar.
Privatization Calculator
Model different recap scenarios. See what your preferred shares could be worth at par, 75%, 50%, or custom.
Timeline Challenge
15-question quiz on Fanniegate history. Net Worth Sweep, court cases, FHFA directors — how much do you really know?
GSE Ticker Trainer
Flashcards, speed quizzes, and memory games. Master every Fannie & Freddie preferred ticker, par value, and coupon.
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