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  • Comment Detail

  • Date: 10/19/14
    First Name: Nick
    Last Name: Garrett
    Organization: N/A
    City: N/A
    State: N/A
    Attachment: N/A
    Number: RIN-2590-AA65

  • Comment

    The steps taken by the Treasury with regard to Freddie & Fannie since the 2008 financial crisis have been appalling on multiple levels and are clearly contrary to the Constitution and against public and private interest.

    The ownership rights upon which this country has been built (and owes much of its success to) have been thrown out the window in the government's unjust sweep of Freddie & Fannie's profits. What is worse is that NO compensation has been given in this expropriation of ownership rights in this case. Even in worst/ most unstable political environments around the world such action would be unthinkable. Hundreds of years that it has taken to build confidence in private ownership rights in the U.S. have been shattered in only a matter of years by this administration.

    It would be one thing to seize the profits on the grounds of public betterment (with just compensation); however, this seizure has done just the opposite. Following the Treasury's actions there is less confidence today in the U.S housing market, particularly among those who really need Freddie & Fannie to obtain the dream of home ownership. Investors in these enterprises believed in the government's vision of affordable home ownership and backed up this vision with their wallets in buying ownership shares. Now these "believers" in the government vision are being unjustly punished (by the government's seizure of their rightful share) for their believe in the government's grand vision only a hand full of years ago.

    To be clear, Freddie & Fannie where not the only enterprises that required government funds during the financial crisis; many companies needed assistance to weather the temporary dislocation in markets. However, Freddie & Fannie are being treated differently because of the Treasury's perception that these enterprises are no longer viable. Is it not for the markets to determine which enterprises are viable and which are not? Based on the fact that the taxpayer funds have been payed back, along with generous interest to-date, it is clear that the markets show that these enterprises are extraordinary profitable (more than can be said for other many other enterprises that required bailout funds).

    Let these enterprises recapitalized through retained earnings and allow shareholders to share in the long-standing vision for affordable home ownership in this country. They not only deserve this by sharing the government vision but they should be entitled to this by law!