(RECAP: In the years since the government modified its agreement with Fannie Mae and Freddie Mac to sweep all the profits from the GSEs into the government’s coffers, many observers questioned whether the so-called “Third Amendment sweep” was even necessary. In the aftermath, a series of Fannie and Freddie shareholders sued the government, claiming the “Third Amendment sweep” was not only unnecessary, but illegal as well. The investors’ cause grew from several court cases into a viral movement on Twitter, where “#FannieGate” has become shorthand for the government’s supposed theft of Fannie and Freddie. Now, it appears that #FannieGate movement has a point about the government’s sweep. A series of now-unsealed depositions show that not only were Fannie and Freddie on track to be profitable for at least 10 years, the government allegedly knew that fact, and more, before choosing to sweep away the GSEs’ profits.)

Powered by WPeMatico