Fannie Mae and Freddie Mac Profit Sweep
Fannie Mae and Freddie Mac may have cited taxpayer protection as the main reason for profit sweeps. There may have been additional agendas that were not as publicized as the taxpayer protection plan.
New "unsealed" documents shared the policies that were highlighted in a lawsuit against the federal government. The documents were brought to light by Fannie Mae and Freddie Mac shareholders.
The documents were examined by The New York Times who highlighted and annotated areas that described intentions aside from taxpayer protection.
"Officials knew that diverting the profits was likely to generate more money to the Treasury than the original formula," according to NYT.
"Treasury officials knew earlier than previously disclosed that Fannie and Freddie were on the road to long-term profitability."
With a clear path ahead of Fannie Mae and Freddie Mac, these sweeps were still implemented, though all of the reasons were not made public at the time.
To read all of the unsealed documents with added annotations from The New York Times, click on the image above.