Wednesday, January 21, 2015

The Fannie And Freddie Recapitalization Plan

The Fannie And Freddie Recapitalization Plan

Tim Howard writes that the conservatorship was engineered by Treasury to drown Fannie and Freddie.
"No other regulator in the world, at any time or under any set of circumstances, ever had used non-repayable senior preferred stock, paid with after- tax dollars, as a vehicle for rescuing a financial institution in crisis (or for any other purpose)," Howard writes. "The goal of this instrument was not to aid the two companies, but to push them into insolvency and keep them there."

1 comment:

  1. I am struggling with the "non-repayable" part. Are the prefs in fact non-repayable as Franie is returned to shareholders and exits con-ship?

    Thankful for any comment.



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