Geithner “Foams Runway”, Pushes Fannie Off the Cliff

17 Aug

“American Express alone received more TARP money than struggling U.S. homeowners

Shortly after former TARP IG Neil Barofsky outed Turbo Tax Geithner for his role in helping out his pals at Goldman  (surprised?) …

 

Little Timmy is pulling the rug out from under GSE’s Fannie Mae and Freddie Mac, because management, quite reasonably, refused to become involved in an Obama conceived scheme to buy votes by arbitrarily reducing the amount of mortgage principle for homeowners who are underwater.

…once again Tim Geithner who ends up with the short end of the stick in his idiotic attempt to escalate a matter which is far beyond his meager comprehension skills. And here is the kicker: “The agreements require an accelerated reduction of Fannie Mae and Freddie Mac’s investment portfolios. Those portfolios will now be wound down at an annual rate of 15 percent – an increase from the 10 percent annual reduction required in the previous agreements. As a result of this change, the GSEs’ investment portfolios must be reduced to the $250 billion target set in the previous agreements four years earlier than previously scheduled.

Geithner threatened Barofsky and got schooled, now he’s just added all the Freddie and Fannie obligations to the US Treasury..

…today’s news brings up an interesting question: with the Treasury in effect announcing it is the beneficiary of the entire Fannie and Freddie’s Income Statement, does that mean the Treasury is also on the hook for their $6+ trillion in debt?

Daily Bail, Zero Hedge, WSJ

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