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No capital for Fannie Mae, Freddie Mac by 2017

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Mortgage Professional America | 10 Mar 2016, 06:30 AM Agree 0
To exert greater control over the tumultuous mortgage market, the U.S. government stripped Fannie Mae and Freddie Mac of capital
  • wheedass | | 11 Mar 2016, 04:02 PM Agree 0
    This isn't a new issue. Part of the illegal net worth sweep involved driving working capital to $0 at both companies.

    I believe it was the plan from the beginning to "show that the GSEs are failed business models". Setting up an artificial situation that causes multiple "bailout" would give the government (UST primarily) the backing they need to destroy FnF and give the business to their former employers, the TBTF banks such as Goldman Sachs.
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