You are absolutely right chess. Additionally, mortgagees putting down less than 20% on the loan were also forced to pay Private Mortgage Insurance (PMI) where the insurance companies were supposed to cover the extra risk of non-payment. Where did all those mortgage insurance premiums go ? The FDIC was created also to insure risk of bank deposits upto $ 250,000 per person, per bank. This from the FDIC official web site : " No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933." The Social Security System, Pension Programs, Individual Retirement Accounts, 401K, 403B etc. all carry guarantees. The United States Dollar also carries a guarantee as legal tender. Every single American tax payer enjoys these guarantees as their rights under our laws. The present administration's vehemence against FnF shareholders is nothing short of vengeance against a section of society that has been declared as patsy to cover larger evil of crooked and corrupt politicians like Barack Obama. This SOB has created a new guarantee for himself in the form of "executive privilege."
Right you are joe. A pendulum that could stop right in the middle might be good enough for starters. FnF does not need reform but the damn system of government does.
richdawn, thanks for sharing these two pieces of reporting. I had read them at different places but their simultaneous presentation at one place truly enlarges the scope of criminal intent on the part of Obama administration. There seems to be no real "separation of powers" decreed by the Constitution with intent toward "checks and balances." None of that exists anymore in our country. This administration is on the one hand expanding the role of the NSA to spy on personal freedoms of citizens worldwide, and on the other hand expanding their "executive privileges" to hide their own blatant misdeeds. Sadly, the spineless legislative branch and judiciary have all taken sabbatical. The Congress has become impotent. The opposition has turned pansy. One can only wish that the next president will have the gumption to publicly undo everything Barack Obama has done to the United States of America. What else can one expect from a chief who was elected on false promises of transparency, because his own broken lineage could not have provided a balanced upbringing. What a damn shame that Americans are now treated as though "Guilty Until Proven Innocent."
Very well written BC111. Thanks for your efforts. Agree with your thoughts too.
WSJ stands for Without Substance Journal. It is the terrain of ignorant AHs. If these guys would stand with an apple on their heads, the shareholders could show some superb archery !!!!
Unbelievable bigyank......................, that's like saying you have the right to rape me because you saved me from being raped by someone else ! Wow, your bill of rights is not my bill of rights.
Oh, thanks for the enlightenment arnold. I thought AIG and FNMA were the same company !!! How passionately stupid of me !!
blade, AIG (original BOD who were ousted) has always maintained that what the company faced at the time was a "liquidity crisis" and did not need a "bailout" which was forced on them under duress. So the class action was against the new AIG (govt installed BOD) for having caused financial suffering to the shareholders. The settlement makes AIG pay damages to its shareholders who had voted down the election of new members of board, and the bailout money. It sets precedent for shareholders to be compensated for corporate fraud and is therefore, seen as a win in principle. Thence the collateral win for the GSE shareholders. Nothing unreasonable about that.
Thanks chess. This is great news and the market has reflected so in both FNMA and AIG stock today. The only way to get snakes out of the house is to fumigate it. That too will be coming hopefully.
If only this govt had the balls to exercise warrants forced out of duress, they wouldn't have waited 6 years for your permission to do so lady marlon. Even petty thieves have been caught at the pawn shop. Yours is the most ludicrous post I've seen here since MAR 7, 2015.
Simply Superb ! The first bamboo up the #$%$'s A.. Many more to follow. Thanks for sharing.
"I want to sell Whitehouse. Being a taxpayer, I own it." - This is among the best comments I have seen on this MB in a long time. Thanks for using your inalienable freedom of speech right mannsngr !!! Personally, I would like to stop all salaries of our government until they start to earn it. Just showing up at the office is not the same as execution of the responsibilities they were hired for. FIRE THE GOVT AND AMERICA WILL BE A NATION AGAIN.
mike, this bill ain't going anywhere. I have to agree with whitecorona's comment below. The govt can't sell or move assets that don't belong to them. Secondly, no reform bill can take effect until ALL the court cases against the govt have been resolved. This is just more static noise. Third no single financial institution has the capacity to "re-capitalize" FnF. Our idiot govt is playing with fire. Is it not strangely ironic that the same govt that has been stealing 100% of the profits of private capital, on the thesis of tax payer protection, is now pushing private capital backing ? All SOBs at their best.
Nice dcrete. That seems to be the modus operandi of DOJ. Their better befitting name should be Department of Injustice. Makes me wonder how much of tax payer's money is being expended to cover up and hide behind illegality.