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Share holders essentially were wiped out and the government did take over Fannie and Freddie. The remnant equities have very little value. Only people interes
by tosseraccount 10y ago
Share holders essentially were wiped out and the government did take over Fannie and Freddie. The remnant equities have very little value. Only people interested in the last 8 years are lawyers hoping to get paid off.
What they should do is auction off the assets, pay off their creditors and let the banks, credit unions and other organizations manage the risk.
There's plenty of competition in the lending business.
- pcarolan 10y agoWhy? We got into this mess because the banks couldn't manage the risk and we had to bail them out.
- tosseraccount 10y agoBanks got into it because the government was guaranteeing it. Make a loan, collect the fee, dump the junk on the tax payer. Government enabled and subsidized this. And still does. Home loan deductions, anybody? We didn't have to "bail them out". We should have let them go chapter 11. Plenty of folks with responsible finances could have bought up the assets.
- collyw 10y agoIt happened to banks outside the US, where they weren't guaranteed (but did get bailed out).