Fannie Mae & Freddie Mac: A Risk Worth Taking

Seeking Alpha - July 15, 2014 - July 15, 2014

Seeking Alpha

July 15, 2014

Up until a year and half ago it would have been unthinkable to invest in Fannie Mae and Freddie Mac the two government-sponsored enterprises (GSEs) that were forced into government conservatorship in 2008 after suffering heavy losses from the bursting real estate bubble. The Treasury Department seemed intent on dismantling them and commandeering all their profits for itself, while shareholders seemed to have no promising way to fight back. However, investing in these GSEs has recently become much more attractive as Congress appears more willing to leave the GSEs intact and as a shareholder lawsuit against the government’s illegal seizure of assets is gaining steam.

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