I don't know how it could be great for common shareholders because the agreement calls for cementing the terms of the purchase of Senior Preferred Stock. The government won't allow the sell of their Senior Preferred stock with those terms that doom the two twins. It also won't allow a third party to offer better terms than the US Treasury, the government used its power to gouge the two companies just because it could.
In 2008, both Fannie Mae and Freddie Mac were bailed out by American taxpayers to the tune of $187 billion dollars. I voted against these bailouts as well as the bailouts of Wall Street banks. The Fannie and Freddie bailout did nothing to protect taxpayers or reform the housing market to prevent a future crisis. I have advocated for both of these changes as a member of the House Financial Services Committee.
Fast forward seven years and Fannie and Freddie's regulator quietly authorized the institutions to pay their CEOs up to $7.26 million a year each, despite the fact that taxpayers still bear the risk for the failed duopoly on an ongoing basis. Fannie and Freddie shortly thereafter announced that their CEOs would receive $4 million a year compensation packages.
The decision to move forward with multi-million dollar salaries at these government sponsored enterprises is unacceptable and offensive. That's why I immediately introduced legislation, H.R. 2243, the Equity in Government Compensation Act, to reinstitute the CEO pay caps. Last week, the United States Senate unanimously passed legislation based on my bill. I'm now working to see that the House of Representatives pass this legislation and get the salary caps signed into law as soon as possible.
Rest assured, my long-term goal is to ensure both of these institutions are wound down and taxpayers are taken off the hook permanently. A housing market with more private capital is far less susceptible to the boom-and-bust cycle which harmed so many Californians during and after the financial crisis. But in the interim, I'm going to prevent the model of private gains and public losses from returning to Fannie and Freddie.
I heard they were copying the GSE's business model for China. U.S.A. is always talking about free enterprise, let free enterprise kick their dirty behinds out of my Fannie and Freddie
I'm ready to entertain the Chinese government to pay off the US Treasury their measly $187 B and give better terms on the Senior Preferred and takeover the sponsorship aspect too.
What the government did to the GSE's is essentically declare eminent domain over shareholders property and then make terms the shareholders never agreed to.
Drove home several important points, any counter-points bs from bashers?
The federal government has not have a worthwhile audit in decades, their accounting is in shambles. US government cannot talk bad about no other organization without being perceived as hypocritical
If there was such a thing as message board etiquette Sam would get a failing grade. His rhetoric is off topic, derogatory, low level bs, trailer trashy, un-called for and stupid
The powerful US government took over loc-stock-and barrel, put their cronies in office and bailed out banks toxic loans.
Y'll keep saying someone else should do something, well now it's on you and not a peep out of y'll without a backbone or stomach to do what needs to be done.
Then there won't be any shares to buy until justice prevails. So go, quit playing around or take a stand now and forever until justice do done. That's what those that were enslaved should have done nothing until justice prevailed.
Cause the government representatives in the US Treasury are from the Banking industry, As for auto, I lot of people depend on their jobs and auto industry is key in areas.
So we want the GSE's to be free and asking the courts to judge on your behalf. It may very well take years or decades to be treated right by the courts. There maybe a civil war before the GSE's gain freedom from government control. Don't believe me, look at how long it took for slaves to gain freedom and some justice from Americans and their justice system.
Half true, yea they resigned but Congress had already given FHFA authority to takeover the GSE's and FHFA had their own cronies for the board of director replacements.
3rd parag page 64 of 10Q reads The amount by which our estimated benefit from mortgage insurance reduced our total loss reserves was $2.7 billion as of
June 30, 2015 and $4.1 billion as of December 31, 2014.
They also said that mortgage insurance isn't required if LTV 80%, which I didn't quite understand. She also said on that report only 4% were insured