via Bloomberg "U.S. Lost $11.2 Billion in GM Bailout, TARP Report Says"
“The goal of Treasury’s investment in GM was never to make a profit, but to help save the American auto industry, and by any measure that effort was successful,” Adam Hodge, a Treasury spokesman, said in an e-mail.
Seems relevant to how FNMA should be resolved.
They are using the profits from FnF to make up the loss from GM. How convenient, at the expense of shareholders! This is a grievous crime and all those involved should end up in jail including the POTUS if he is guilty; no one is above the law.
• Civil fraud at a TARP bank related to faulty mortgages can lead to substantial
losses for Government-sponsored enterprises Fannie Mae and Freddie Mac.
. Based on Bank of America’s representations about underwriting
and other quality requirements of the loans, Fannie Mae and Freddie Mac
purchased thousands of fraudulent and otherwise defective residential mortgage
loans that later defaulted, causing enormous losses.
Our investigation with our law enforcement partners uncovered fraud by
Countrywide Financial Corporation and its successor, TARP recipient Bank
of America, before and during the bank’s time in TARP. Bank of America
originated a high volume of mortgages in a high speed process called the
“Hustle” (for “High-Speed Swim Lane” or “HSSL”) for sale to Fannie Mae and
Did GM face this sort of problem? No.
So why treat GM differently then Fannie as to shareholder rights.