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Daily Archives: June 30, 2012

Fannie Mae and Freddie Mac: Where the Taxpayers’ Money Went

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FHFA OIG – Fannie Mae and Freddie Mac: Where the Taxpayers’ Money Went. White Paper 2012-02, May 24, 2012

  • “Freddie Mac owned or guaranteed mortgages worth more than $5 trillion, nearly half of the U.S. mortgage market. They did not have adequate capital reserves to continue operating in the face of the growing losses on their mortgage portfolios. In September 2008, the Enterprises entered conservatorships overseen by FHFA, and, to prevent their insolvency, Treasury began making quarterly capital contributions to each institution. This money has been used primarily to cover losses stemming from singlefamily mortgage loans that the Enterprises had acquired from 2004 through 2008. In addition, but to a lesser extent, Treasury’s investments have covered payments of dividends to Treasury as well as losses from investments and other expenses. Without assistance from Treasury, the Enterprises likely would not have been able to repay their debts or honor their mortgage-backed securities (MBS) guarantees. Further, they would have been unable to finance new mortgages or create new MBS, two of the cornerstones of the U.S. housing finance system.”
  • Related postings on financial system

    • Forbes Investigative Report – The truth about the Fast and Furious scandal

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    “A Fortune investigation reveals that the ATF never intentionally allowed guns to fall into the hands of Mexican drug cartels. How the world came to believe just the opposite is a tale of rivalry, murder, and political bloodlust.” – by Katherine Eban Statement of Eric H. Holder, Jr., Attorney General, United States Department of Justice… Continue Reading

    Quarterly Survey of Public Pensions: 1st Quarter 2012

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    “This quarterly survey (formerly known as the Finances of Selected State and Local Government Employee Retirement Systems Survey) provides national summary statistics on the revenues, expenditures and composition of assets of the 100 largest state and local public employee retirement systems in the United States. These 100 systems comprise 89.4 percent of financial activity among… Continue Reading

    Census – Texas Dominates List of Fastest-Growing Large Cities Since 2010 Census

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    News release: “Texas had eight of the 15 most rapidly growing large cities between Census Day (April 1, 2010) and July 1, 2011, according to population estimates for all of the nation’s incorporated cities and towns and minor civil divisions released today by the U.S. Census Bureau…Although Texas dominated the list as a whole, the… Continue Reading

    FHFA's Oversight of the Federal Home Loan Banks' Unsecured Credit Risk Management Practices

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    FHFA’s Oversight of the Federal Home Loan Banks’ Unsecured Credit Risk Management Practices, Evaluation Report 2012-005, June 28, 2012 “Extensions of unsecured credit by the FHLBanks to, among others, European financial institutions, increased substantially in 2010 and 2011, even as the risks associated with doing so were intensifying. For example, FHFA-OIG found that in 2011… Continue Reading

    FOIA Request by ACLU Produces More Information on National Security Letters

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    Ars Technica: “As the result of a Freedom of Information Act request filed by the American Civil Liberties Union, the Department of Justice has revealed, for the first time, the types of secret letters that the government can send out to ISPs and other tech companies being asked to reveal personal data about their users… Continue Reading