A Step in the Right Direction for Fannie Mae and Freddie Mac Shareholders
Motley Fool - April 1, 2015 - April 1, 2015
Motley Fool, By Matthew Frankel
Recently, a bill was introduced in the House of Representatives that would overhaul the way Fannie Mae (NASDAQOTCBB: FNMA ) and Freddie Mac’s (NASDAQOTCBB: FMCC ) profits are handled. While this won’t directly benefit the agencies or their shareholders right away, it could go a long way toward fixing both the agencies themselves and the current status of the shareholders, which many people believe isn’t exactly fair.
Rep. Marsha Blackburn (R-Tenn.) introduced the bill in order to create a place to put Fannie and Freddie’s profits until Congress figures out what to do with the two government-sponsored enterprises. Basically, all of the agencies’ profits would be placed into an escrow account, rather than straight into the Treasury’s pocket as they have been since Fannie and Freddie became profitable several years ago.
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