When wise guys try to grab your Fannie

  • 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.

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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.