Fannie and Freddie: "Where the Money Went" (Or: Anatomy of a Government-Sponsored Hedge Fund Blowup)

During 2008 the two GSEs had combined losses of more than $100 billion.  For some perspective, over the 37 year history of the two companies (1971-2008) they earned $95 billion less than they lost in 2008 alone.  During the next three years ending in Q3 2011 the GSEs lost another $251 billion.  "In other words, the losses incurred during the conservatorships are more than double the cumulative net income the GSEs reported as public companies."

And let's not forget that the GSEs were run for private profit -- at least for the executives that ran them; something that continued even THROUGH their respective Enron-esque accounting scandals through 2004 [Ed note: isn't it funny how the video in the previous link -- of OFHEO top regulator Armando Falcone questioning corrupt Fannie Mae officials -- has been "disappeared" completely?].

Despite piloting the GSEs to loss-making that effectively wiped out their entire historical "benefit", those executives (chief amongst them Franklin Raines) have not had to give back a dime.