Articles: Obama Looted Fannie Mae and Freddie Mac

Articles: Obama Looted Fannie Mae and Freddie Mac:
"President Obama never was shy about using his phone and pen to achieve what he could not get from Congress on regulatory matters.
But documents revealed last week show the Obama administration may have been willing to get around congressional decisions on spending by using a slush fund of sorts funded by the profits of Freddie Mac and Fannie Mae, the two government-sponsored home loan giants.
...In response to the mortgage crisis of 2008, Congress passed the Housing and Economic Recovery Act, which provided $187.5 billion in government loans for Fannie and Freddie and placed them in conservatorship under the newly established Federal Housing Finance Agency.
But Fannie and Freddie were not in such bad shape after all, and in just a few years, they were turning profits and on course to pay back the government with interest and still have money to pay dividends to their investors.
In 2012, the Obama administration came up with a plan to divert those profits to the Treasury that became known as the Net Worth Sweep. ...
The dividends were a problem for the administration because it made it hard to explain why it needed to abscond with Fannie and Freddie’s $241 billion in profits, execute an improper taking against the shareholders, and spend the money without congressional approval.
Some even pushed to change accounting methods to make Fannie and Freddie look worse on paper and/or force them to “need” loans to survive..."
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