The same politicians that caused the worst financial crisis ever, forcing the GSEs to make toxic mortgages (at that time were called affordable mortgages, commented below), now are:
1st. Desperate leaking comments (abolish, wind-down, dissolve, eliminate the GSEs, etc...) to the market to lower the common share price of these companies, in order to swap its senior shares to cheap common shares and then sell them at fire-sale prices to the big banks, the same banks that sold mortgages with faulty information to the GSEs.
2nd. Manipulating the Mortgage-Backed Securities market hiring 8 private equity funds to buy these assets. These private funds have gained huge amount of money (http://www.cnbc.com/id/41228798) because the toxic assets have doubled. Source: Bloomberg http://www.businessweek.com/news/2011-02-02/-toxic-mortgages-rally-as-resets-accelerate-credit-markets.html
The politicians market-manipulators should go to jail.
This is part of a letter sent to the President where top democrats were forcing the GSEs to make more toxic mortgages:
"Dear Mr. President:
June 28th, 2004
We urge you to reconsider your Administration's criticisms of the housing-related government sponsored enterprises (the "GSEs'') and instead work with Congress to strengthen the mission and oversight of the GSEs.
We write as members of the House of Representatives who continually press the GSEs to do more in affordable housing. Until recently, we have been disappointed that the Administration has not been more supportive of our efforts to press the GSEs to do more. We have been concerned that the Administration's legislative proposal regarding the GSEs would weaken affordable housing performance by the GSEs, by emphasizing only safety and soundness. While the GSEs' affordable housing mission is not in any way incompatible with their safety and soundness, an exclusive focus on safety and soundness is likely to come, in practice, at the expense of affordable housing...."
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Jesse Phoenix, United States4 years ago Comments: It wasn't FnF's fault. Stop being politically correct at the expense of the nation and regulate properly We need FnF.
michael boucino, United States4 years ago Comments: -
Larry Nichols, United States4 years ago Comments: Fannie Mae and Freddie Mac are showing profitability. But the two still ask the Treasury Department every quarter for billions of dollars, most of it going right back to pay dividends to the same U.S. agency.To keep the common share price of these companies low in order to swap its senior shares to cheap common shares is "Manipulation"
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