When Obama wanted to funnel money to insurance companies to keep Obamacare from collapsing, congress refused to appropriate it. But all of a sudden, Obama found the cash to pay the insurance companies. It now appears that he was taking the profits from Fannie Mae and Freddie Mac and using that money to pay off the insurance companies. The problem is when Obama sought investors to prop up Fannie and Freddie, the investors were promised dividends on the profit. “If you like your dividend you can keep it.”
Now, the investors are suing to get their money back. That means both entities will have to produce proof of where the money went. Obama will have a lot of explaining to do. In case you are wondering, there is no grey area. Taking that money is a felony. Although a president can sometimes divert money, this is not one of those cases. He took money that belonged to investors.
A group of Fannie and Freddie shareholders, who believe their profits were skimmed by Obama and his cronies to fund Obamacare insurance subsidies, are fighting back. They sued the federal government to receive the dividend payments that were pocketed by the federal government.
The shareholders have a right to be mad. Their initial investments were used to rescue Fannie Mae and Freddie Mac as part of the Housing and Economic Recovery Act of 2008 – the housing bailout bill. Fannie and Freddie profits were supposed to repay those shareholders for bailing them out, as well as fund an emergency account to ensure future bailouts wouldn’t be needed.
Since 2013, however, all of the profits generated by Fannie and Freddie have been swept into the Treasury Department’s general funds. Not a dime has been returned to investors or set aside for a rainy day.
This raiding of Fannie and Freddie profits has become known as the “Net Worth Sweep.” The maneuver, which takes place regularly with no Congressional authority, inappropriately diverted $240 billion in dividends from investors to federal programs such as Obamacare.
Now it’s up to President Trump to put an end to the practice that steals money from investors who saved Fannie and Freddie:
If President Donald Trump is truly committed to draining the swamp, he should look no further than putting an end to the Net Worth Sweep. There is simply no place in the federal government for a scam that improperly funded Obamacare behind the backs of Members of Congress, while ripping off the investors who bailed out America’s housing market.
Rather than allowing the Net Worth Sweep to continue, President Trump should stop the sweep payments, demand the Justice Department turn over 11,000 Net Worth Sweep-related documents the previous administration refused to make public, and fully investigate how every dime of Net Worth Sweep money has been spent.