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Investors hold ‘worthless paper’ after feds seize billions in private dollars

Tennessee Watchdog, By Chris Butler

Fannie Mae and Freddie Mac have essentially paid back the $187 billion U.S. taxpayers loaned them after the economy tanked in 2008, but the feds are still seizing all of their profits.

The U.S. Treasury Department is doing this under something known as a “Third Amendment Sweep.”

But these profits, said Tim Pagliara, chairman and CEO of the Franklin-based CapWealth Advisors, belong in the private sector.

The government’s actions leave Fannie Mae’s and Freddie Mac’s shareholders with nothing.

Read full article: Investors hold ‘worthless paper’ after feds seize billions in private dollars