copyright1997reloaded
Thinks s/he gets paid by the post
So - those off you who have followed this over the decades how about some history. Didn't "we" originally own them, then give them away to the private sector to put them in better hands, only to have to buy them back to save the global economy from what the "much vaunted" private sector did to them?
Yes.
From the Fannie Mae website:
About Fannie Mae
Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risked losing their homes, for lack of a consistent supply of mortgage funds across America.
The government established Fannie Mae in order to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home.
In 1968, Fannie Mae was re-chartered by Congress as a shareholder-owned company, funded solely with private capital raised from investors on Wall Street and around the world.
See:
History Of Fannie Mae
1938:
[SIZE=-1] Federal government establishes Fannie Mae to expand the flow of mortgage money by creating a secondary market. Fannie Mae is authorized to buy Federal Housing Administration (FHA)-insured mortgages, thereby replenishing the supply of lendable money.[/SIZE]
1954:
[SIZE=-1] Fannie Mae becomes a "mixed-ownership" corporation owned partly by private stockholders.
1968:
[/SIZE][SIZE=-1]Chairman and President Raymond H. Lapin joins Fannie Mae. After 30 years of business, President Lyndon B. Johnson signs legislation amending Fannie Mae's Charter Act and establishes Fannie Mae as a private, shareholder-owned company.
[/SIZE]While I was cruising down history lane, I found this interesting tidbit circa 2004:
http://www.nytimes.com/2004/12/22/business/22fannie.html
http://www.nytimes.com/2004/12/22/business/22fannie.html?pagewanted=print&position=
andWASHINGTON, Dec. 21 - Under heavy pressure from regulators, Fannie Mae, the mortgage finance giant, forced out its chairman and chief executive, Franklin D. Raines, late Tuesday, days after the company was found to have violated accounting rules. The ouster of Mr. Raines, who turns 56 next month, may mean the end of an extraordinary political and business career. Mr. Raines, a high-ranking official in the administration of President Bill Clinton and a prominent Democrat, had traveled from a family that was once on welfare to the pinnacle of government, academia and business.
andIn recent years, some industry and government critics, including Alan Greenspan, the chairman of the Federal Reserve, have sought to have Fannie Mae's privileges removed. They say the company could pose a significant risk to taxpayers if it became troubled. And the White House, concerned about any political fallout if Fannie were to stumble, has declined to make 5 appointments to the 18-member board.
The announcement on Tuesday was a remarkable vindication for Ofheo and Mr. Falcon. The regulatory agency had long been viewed as captive to Fannie Mae and Freddie Mac, the two large government- sponsored enterprises that it regulates. In recent years, Fannie Mae in particular waged a quiet war against Ofheo in Congress, seeking to reduce its power and cut its budget.
As recently as two months ago, Mr. Falcon had come under attack in Congress. At a hearing in October to explore his agency's conclusions about Fannie Mae, he faced hostile questioning by lawmakers, some of whom had been given questions by Fannie Mae. Representative William Lacy Clay, Democrat of Missouri, accused Mr. Falcon of leading a "political lynching" and a "witch hunt."