Good Analysis from The Street Article by Philip W. van Doorn
"Numerous voices will be asking why the Treasury doesn't want its preferred investment -- the taxpayer bailout -- to be repaid. Fannie is now a profitable company with $3.2 trillion in total assets as of Dec. 31. It's not simply going to disappear, despite what we hear from various politicians.
There is also a possibility of the junior preferred shareholders filing a lawsuit against the government.
Australian hedge fund manager John Hempton, said in an interview with TheStreet on March 21 that the government's windfall on Fannie and Freddie could cause an "enterprising lawyer [to] take the case all the way to the Supreme Court and win."
Hampton said the August deal for Fannie Mae and Freddie Mac to effectively pay unlimited dividends to the government violated the Fifth Amendment of the U.S. Constitution, which requires "just compensation" to be given if the government seizes private property for public use."
Oh the lawsuits will rain down from all over the world if the government tries screwing the shareholders. The US government has never been effective or even interested in any business other than war, so I don't see why the Obama administration would want to lock up in a multi-year (possibly decades) constitutional showdown in courts that will cost tax payers billions of dollars?
Advise to the Fed: Be like the rest of us, get your returns, and maybe a nice little profit for your troubles and then get the $@%$ out of Fannie :)
lol.. they've already screwed the shareholders long and along. they have crushed f&f and they - the guberment - ought to be taken to the legal woodshed. 10% really - wasn't the other tarp related funds at 3% and that was money given to the banks that originated the loans that they sold to f&f and represented as good.
Isn't a little interesting that they are shooting not the creator of the bad loans but those that actually invested good money in them - thinking they were good - as the rating agencies said so...
Been getting dividends along the way. Over $30 Billion already and maybe over $60 Billion on 4/19. These payments not being applied to what is owed... tax payers getting 17% return on the money borrowed...