Fannie, Freddie may have lost $3 billion in Libor: watchdog

Comments (3)
xyz2055 wrote:

Only in American politics do you create a government backed entity for mortgage lenders and big banks to dump ill conceived mortgages and crazy point spread schemes on the government so taxpayers can pick up the tab. I say shut down both of these pieces of dog do, pawn off the assets for whatever we can get, take the financial hit and vow never again to get into the mortgage business. If you want the American dream, show a steady job history and a 20% down payment. Uncle “Sugar” is closed for business…permanently!

Dec 19, 2012 11:16pm EST  --  Report as abuse
nose2066 wrote:

There’s probably many different ways that Fannie and Freddie lost money. They could have borrowed money from the Federal Reserve at close to zero percent interest, but they did not. They had to pay the Treasury a 10% dividend on the preferred shares that they sold to the U.S. Treasury Department, instead of paying 6% like the banks did. In fact, Fannie and Freddie were loaning money to banks at close to zero percent interest.

Dec 20, 2012 12:58am EST  --  Report as abuse
nose2066 wrote:

There’s probably many different ways that Fannie and Freddie lost money. They could have borrowed money from the Federal Reserve at close to zero percent interest, but they did not. They had to pay the Treasury a 10% dividend on the preferred shares that they sold to the U.S. Treasury Department, instead of paying 6% like the banks did. In fact, Fannie and Freddie were loaning money to banks at close to zero percent interest.

Dec 20, 2012 1:07am EST  --  Report as abuse
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