Thursday, February 12, 2015

Committee on Financial Services

http://financialservices.house.gov/uploadedfiles/fy16_budget_views_and_estimates.pdf

Views and Estimates of the Committee on Financial Services on Matters to be Set Forth in the Concurrent Resolution on the Budget for Fiscal Year 2016
THE GOVERNMENT SPONSORED ENTERPRISES
2
3 After they failed in September 2008, the Government Sponsored Enterprises (GSEs)
4 Fannie Mae and Freddie Mac were placed into conservatorship under the Federal Housing
5 Finance Agency (FHFA). The GSEs failed because of years of mismanagement,
6 unsustainable market practices, and an inherently flawed hybrid business model, and their
7 failure resulted in the costliest of all the taxpayer bailouts. The GSEs remain in business
8 only because the federal government grants them preferential treatment it affords to no
9 other financial institution. For example, the federal government allows the GSEs to
10 conduct new business, even though they are critically undercapitalized. According to their
11 latest 10-K Annual Reports, Fannie Mae was leveraged at 341-to-1 and Freddie Mac was
12 leveraged at 156-to-1. The GSEs’ chronic and critical undercapitalization poses an
13 unacceptable risk to taxpayers.
14
15 To date, Fannie Mae has drawn approximately $117 billion in taxpayer funds, and
16 Freddie Mac has drawn approximately $72 billion. So far, taxpayers have bailed out the
17 GSEs to the tune of $189.485 billion. In exchange for the more than $189 billion that the
18 GSEs drew from the Treasury to prevent them from going bankrupt, the Treasury
19 Department—and thus, the taxpayers—received shares of GSE Senior Preferred Stock.
20 Under the terms of the taxpayer-funded bailouts, the GSEs pay dividends on those shares
21 when they show a profit, but those dividend payments cannot be used to reduce or redeem
22 the shares of preferred stock that the taxpayers still own.

This should say:

THE GOVERNMENT SPONSORED ENTERPRISES
2
3 After they failed in September 2008, the Government Sponsored Enterprises (GSEs)
4 Fannie Mae and Freddie Mac were placed into conservatorship under the Federal Housing
5 Finance Agency (FHFA). They only failed after the conservatorship drew down onto the DTA False losses that never happened!

The GSEs failed because of years of mismanagement, By the USA government meddling 
6 unsustainable market practices, and an inherently flawed hybrid business model, and their
7 failure resulted in the costliest of all the taxpayer bailouts. Again because of the fake draw down by the conservatorship
 The GSEs remain in business
8 only because the federal government grants them preferential treatment it affords to no
9 other financial institution. The treasury takes all their profits in exchange for fannie and freddie holding up american housing for last 6 years from complete disaster.
 For example, the federal government allows the GSEs to
10 conduct new business, even though they are critically undercapitalized. The treasury has taken all their profits each quarter, leaving nothing.
According to their
11 latest 10-K Annual Reports, Fannie Mae was leveraged at 341-to-1 and Freddie Mac was
12 leveraged at 156-to-1. The GSEs’ chronic and critical undercapitalization poses an
13 unacceptable risk to taxpayers. Tell the treasury to quit being the biggest thief in the USA
14
15 To date, Fannie Mae has drawn approximately $117 billion in taxpayer funds, has paid back $130 billion and
16 Freddie Mac has drawn approximately $72 billion.has paid back $92 billion So far, taxpayers have bailed out the
17 GSEs to the tune of $189.485 billion. and were paid back $230 billion for their loan In exchange for the more than $189 billion that the
18 GSEs drew from the Treasury to prevent them from going bankrupt, the Treasury
19 Department—and thus, the taxpayers—received shares of GSE Senior Preferred Stock.
20 Under the terms of the taxpayer-funded bailouts 3rd ammendment, the GSEs pay dividends on those shares
21 when they show a profit, but those dividend payments cannot be used to reduce or redeem
22 the shares of preferred stock that the taxpayers still own. send the taxpayers their shares of stock if they own it, seems like the treasury owns it, not my neighbors and me! 


No comments:

Post a Comment

leave a reply: