When Our Government Commits Fraud

By Richard Epstein on March 5, 2014

The executive branch has behaved duplicitously in its dealings with Fannie and Freddie’s private shareholders.

Last week, the government announced that it will receive another multi-billion dollar dividend from Fannie Mae and Freddie Mac. That payment will return to the United States Treasury (with interest) all of the $187 billion in bailout money lent to the two mortgage giants after September 2008, pursuant to the Housing and Recovery Act (HERA) passed in July 2008. HERA authorized the newly minted Federal Housing Finance Agency (FHFA) to throw both Fannie and Freddie into a statutory conservatorship, and required FHFA to manage the assets of both corporations to facilitate their orderly return into private hands upon repayment of the government advances.

For more, see the complete article at When the Government Commits Fraud at Defining Ideas.