It’s time for the Federal government to make a decision about Fannie and Freddie — to let them die a gradual death or to help them resurrect.

The government’s disingenuous measures that have kept the lending institutions afloat have been unlawful and dangerous for taxpayers and for the organizations’ investors. Congress should insist that Fannie and Freddie be wound down through receivership or be allowed to recapitalize and resume operations.

The ongoing litigation brought by private shareholders against the government for its alleged looting of Fannie Mae and Freddie Mac has finally started receiving media attention. Respected financial journalists have highlighted the contradiction between the Federal Housing Finance Agency’s (FHFA) decision to give the U.S. Treasury all of Fannie’s and Freddie’s profits in perpetuity with Congress’s mandate under the Housing and Economic Recovery Act of 2008 (HERA) that the FHFA act as conservator to restore the companies to sound condition.

Here is the link to the full article