Actually I would rather it go to the US Treasury rather then into the pockets of Bill Clinton cronies which is what was being done up to the 2008 crash.
I would rather we treat private, semi-private and government entities by the same set of rules. If they are bankrupt, either reorganize or liquidate. Don’t just make up a set of rules that allows the government to pick winners and losers or siphon off profits.
It still goes to cronies. It rips off investors. There is no legal basis for it. It is embezzlement of the US Treasury.
The Obama Treasury Department under Geithner propped up Fannie and Freddie, bought shares and collected interest as they should. Nothing wrong yet.
Then, Treasury sold its stake to investors for hundreds of billions, but for tens of billions less than was originally injected. Now the investors who bought in should collect interest, only they are not. That’s looting, stealing from investors who have a right to the interest.
Treasury sold out low to investors because the housing market was still awful and money was needed to buy off Obamacare cronies for the 2012 election. When the housing market turned up, the investors who took a risk were set to make a profit on their investment. But Geithner, Obama, and many others saw the profits and stole them. There was nothing in the investment agreements to say the government would take more interest than it was due. So several lawsuits have been filed over the stolen interest.
The original many hundreds of billions to prop up Fannie and Freddie were part of the ongoing bailout of institutions during the financial collapse. When Treasury decided to sell the government’s stake in Fannie and Freddie, it was in 2012 when Obamacare was failing due to lack of funds. There was no Congressional authorization for additional funds until years later.
To prevent an election issue over Obamacare insolvency. Geithner sold the government’s stake for over 300 billion to investors. Rather than put that 300+ billion into the general fund and lower the projected debt ceiling accordingly, Geithner illegally authorized a transfer from Treasury to Obamacare cronies. Then Geithner promptly resigned and laid low.
So now, President Trump has an opportunity to prosecute high ranking democrats and republicans over Obamacare crony related embezzlement. In so doing, he can declare Obamacare insolvent, managed criminally, and ask Congress for a FULL repeal, and new legislation to break competitive barriers and monopolies. In other words, what he ran on.