Fannie Mae Freddie Mac taken over?

[quiggly]

I don't really claim to be an economic wiz by any means, but is anyone else extremely disturbed by the news today of the government forcing the boards out of these two companies?

I really don't understand what this means but were these not publicly held companies that were just taken over? Isn't this what the USA is NOT about.

Who in the Federal Government can make this decision? I would think this to border on illegal?

I am curious as to what other people think of this decision...

 

[melensdad]

It reminds me a lot of the Chrysler bailout. I didn't like that either.

Then again, these things are so intertwined in our economy that this action could reverse the recessionary trend we are hovering in/above. I don't like it, but it may have been a practical necessity? I just hope that it is not held by the government but rather rereleased as private entities after the bailout.

 

[JcJ]

The slippery slope is at about a 90 degree angle greased with KY, with us Americans bent over receiving the end game..

 

[quiggly]

It also is stating that since the Execs were dismissed without cause, they still are eligible for their golden parachutes which is in the 20 million dollar + range.

I know this seems to have been standard practice for companies in the 90s and early 2000's but this money should be reinvested back into the companies or at least help relieve some of the debt burden the taxpayers are being soaked with.

Here is a link that really got me started.

US Is "More Communist than China": Jim Rogers - Financials * Europe * News * Story - CNBC.com

 

[Jerry]

Fannie Mae (The Federal National Mortgage Association) and Freddie Mac (Federal Home Mortgage Corporation) were Government administrations founded during the great depression to provide money to banks for home loans and such. Eventually they were turned into government sponsored enterprises (GSEs) in the 60’s which basically makes them a private firm, owned by shareholders, but financially “protected” by the government; therefore, in the event something went wrong, the government could “step in.”
Needless to say, the government did, and virtually liquidated the common stock and most of the preferred stock of both organizations so China, whom has purchased most of the loans that Fannie Mae and Freddie Mac purchased from banks, can still get paid.

Just wait until they decide to “bail out” the automotive companies.

 

[JcJ]

It also is stating that since the Execs were dismissed without cause, they still are eligible for their golden parachutes which is in the 20 million dollar + range.

http://www.cnbc.com/id/26603489

Thats the part, above and beyond all else, that really pisses me off..

 

[semiauto]

It is indeed disturbing that the government now has a hand in the affairs of these two, but if they would have gone under, we'd be screwed. We can only hope that someday the shares will be turned back over to private holders...

 

[indyjoe]

It is indeed disturbing that the government now has a hand in the affairs of these two, but if they would have gone under, we'd be screwed. We can only hope that someday the shares will be turned back over to private holders...

What has the government taken that they have ever given back?

 

[Bigum1969]

What has the government taken that they have ever given back?

That is a good question...

 

[CarmelHP]

The shareholders screwed the pooch by not watching over the officers. Now, if they would only throw the officers into prison for fraud, I'd be happy.