[thinden]

Be back

[Chode]

[SubMareener]

We recently refinanced and after s month on the new loan, we got a letter saying our loan had been sold to Fannie May but there wasn’t going to be any paperwork other than the letter.

[SteveH]

imho deserves reading in full.

[Toddsterpatriot]

This suggests that somehow, without the American public’s awareness, the U.S. government is on the hook to two failed companies for $445.6 billion dollars.

They were failed companies in the past. They may be failed companies in the future. Lately, they've been a big cash cow for the Treasury. They paid back the $187.5 billion and another $59 billion in profits.

While that is factually true, the other potentially more important part of this story is the counterparty exposure the Wall Street banks had to Fannie and Freddie’s derivatives if the firms had been allowed to fail.

Fannie and Freddie could have made money on these interest rate swaps.

[Jack Hydrazine]

From what I have read there’s about $1 quadrillion worth of derivatives on Wall Street. Can the Fed cover that?

[Gaffer]

Yet, Jaime Gorelick, Franklin Raines and James Johnson of Fannie Mae and Freddie Mac were given scores of million dollar bonuses.

[Wolfie]

As long as the traders get their bonuses, all is well.