“An accounting irregularity bordering on fraud”, Fannie Mae, Freddie Mac contradict themselves over net worth sweep

The net worth sweep continues to be a topic of major debate for Fannie Mae and Freddie Mac shareholders. On one hand, there are plenty of reports that the net worth sweep is over, but on the other, the government-sponsored enterprises' financial reports seem to say something different. Bank analyst Dick Bove of Odeon Capital describes Fannie's and Freddie's latest reporting as "an accounting irregularity bordering on fraud."

Government is unwilling to do anything for shareholders

He argues that the government wants total control over the recapitalization and release of the GSEs and over their operations "for now and the future."...