Wall Street sharpies are trying to run off with Fannie Mae, a twist on politicos who would either shut it down, wish it would go away, or would drag off the old honey-pot for constituents. The company’s stockholders were back in court this week, insisting that Fannie went through a sort of bankruptcy reorganization and is now repaired and profitable. And, therefore, should be theirs to profit from once again.
- Fannie Mae and Freddie Mac's stockholders were back in court this week, insisting that Fannie/Freddie went through a sort of bankruptcy reorganization and are now repaired and profitable.
- Fannie’s last eight years have been weird. It has paid back all the bailout money. It has also shoveled all profits to the Treasury.
- Without those retained earnings, it is certain one day to need another bailout. We continue to transfer all of those earnings to the Treasury because of one oops-a-daisy in 2008: We neglected to wipe out Fannie’s stockholders, who are now trying to regain control.