Fannie Mae Is Political Dynamite: Bove

It’s a difficult choice.

Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) continue to haunt America’s political leadership with the prospect, however remote, of a repeat of the housing crisis that led to their conservatorship. Taken together, the two GSEs support 90% of the country’s housing mortgages, and politicians such as President Obama, and Senators Bob Corker (R-TN) and Mark Warner (D-VA), have been vociferously advocating the need to wind them down to eliminate the possibility of another shock to taxpayers.

But the uncomfortable reality is that the two institutions have been instrumental in providing...