Fannie And Freddie: Financial Disclosures Needed On Guarantee Fee Assets

Seeking Alpha - November 12, 2014 - November 13, 2014

Seeking Alpha, By David Sims

Separately, Senator Bob Corker spoke to constituents in Williamson County Tennessee last week. John Lueken, chief investment strategist at Cap Wealth Advisors, attended the meeting and asked the Senator about GSE reform afterwards. Senator Corker made it very clear that he would figuratively “throw himself down in front of a train” before he would allow Fannie Mae and Freddie Mac to emerge from government control. He also said very clearly that he believes shareholders have made this a personal issue, not driven by policy.

So naturally, this has become a personal issue for him, and as long as it is a personal issue, he will not discuss policy issues with the shareholders.

Of course, for many shareholders, this has become a personal issue. The Corker-Warner GSE reform bill that Senator Corker championed left no room for shareholders. In fact, Senator Warner said that he would be fine with taxpayers getting a 30-to-1 return before shareholders saw a dime. How can this not be personal? It’s an issue of private property rights, and neither Senator seems to understand that.

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