Gretchen Morgenson: Fannie Mae and Freddie Mac being "held captive"


Gretchen Morgenson: Fannie Mae and Freddie Mac being “held captive”

Gretchen Morgenson: Fannie Mae and Freddie Mac being “held captive”

New York Times-

When Washington took over the beleaguered mortgage giants Fannie Mae and Freddie Mac during the collapse of the housing market and the financial crisis of 2008, it was with the implicit promise that they would be returned to shareholders after being nursed back to health.

But now, with the unsealing of documents this week that were produced as part of a lawsuit filed against the government, new evidence is coming to light on how intimately the White House was involved in the Treasury’s decision in August 2012 to keep all the companies’ profits for the government. That move effectively maintained Fannie’s and Freddie’s status as wards of the state.

The newly released documents go beyond previous disclosures in the case and make clear that the Obama administration never had any intention of restoring Fannie and Freddie, which enjoyed implicit backing from the government before the takeover, to their status as stand-alone entities.


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2 Responses to “Gretchen Morgenson: Fannie Mae and Freddie Mac being “held captive””

  1. Charles Reed says:

    Gretchen suppose to be the leading journalist in the financial area but how can you talk about Fannie Mae & Freddie Mac and not mention Ginnie Mae?

    Did 800,000 Ginnie Mae pooled loans during 2009-2010 not get process for the HAMP (did not work), FHA HAMP (did not work) or VA HAMP (did not work) so all of them were illegally foreclosed.

    Fannie & Freddie it appears was not purchasing the loans placed into their Mortgage Backed Securities (MBS)as shown in the recent court decision where they cannot provide proof of ownership. Freddie or Fannie don’t have purchase agreement or receipts or wires that they purchase a $200,000 loan!

    Why does America not know about the fraud in the Ginnie Mae program where 50,000 Dept of VA veteran home owners have been illegally foreclosed, is because Gretchen and the other reported are not great at their jobs and are part of the problem!

  2. keepon says:

    Read Naked Capitalism Yves Smith has NEVER GIVEN UP getting to the bottom of Foreclosure Fraud! As each new piece of “Foreclosuregate” unravels she and her COMMENTERs are ‘on it.’ READ THOSE COMMENTS!


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