Fannie & Freddie Bailout Came with Claws

Even as Fannie’s profit report brought hope to shareholders, it also stirred government officials to action. The day after Fannie’s announcement, court documents show, a high-level official at the agency that regulates the lender sent an email to a colleague. In it, the official asked for legal advice regarding a proposed change to the repayment terms of the government’s bailout of Fannie Mae and its brother mortgage backer, Freddie Mac.Three months later, on a quiet Friday in August, that change came: The Treasury Department would take all of the companies’ profits for its general-purpose fund, helping to finance government operations and reduce debt.