Racing to the bottom
September 12, 2008 at 09:30 AM EDT
[Skip to the end] Here’s how I see the problem: The Fed and Treasury have set precedents of, for all practical purposes, wiping out shareholders when providing what they consider ‘taxpayer money at risk’. With FNMA, the Treasury provided funding on their own initiative without consent of management. Therefore, while justified or not, this means the government can, [...]