what is good for fannie is good for Freddie.
I am looking forward to when the non political analysts crunch the numbers.
They are not all on the Kill Freddie Bandwagon.
Someone is going to figure our they can look like hero by calling this right.
Wont be Bloomberg that is for sure.
I seem to recall after the take over a few years back that the company had a positive tax deferral that the govt made them give up. That positive deferral would have reduced future corp income taxes on profits. Not exactly sure which deferrals they are talking about now. Just assuming that it would now increase their profit.
Taking the Def tax asset off and over reserving the bad debt allowances also caused F&F to over "borrow" to put net worth back at positive. It was a potential massive fraud forced upon these two by their "regulators". Had these two entities been treated fairly and with any back bone like AIG for example; the borrowings could have been 1/3 the gross amount of 190B. Likely only 60B or so and as we've all seen these amounts would easily be repaid in 3-4 years. This is a lawsuit just waiting to happen.