Fannie Mae And Freddie Profiting From Suing Banks

Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) are probably not long for this world, having taken a lot of the blame (deserved or not) for the financial crisis that we’re just now recovering from, but in the meantime they are making a decent profit suing banks that sold the two entities mortgage-backed securities that turned out to be a lot more risky than advertised.

Now American International Group Inc (NYSE:AIG) is following their lead by suing Bank of America Corp (NYSE:BAC) for $10 billion, and it may sue Morgan Stanley (NYSE:MS) over $3.7 billion in mortgage-backed securities, and Rafferty Capital Markets vice president of equity research Richard X....