Expand homeownership or achieve returns for the shareholders? That was the balancing act that ultimately toppled government housing firms Fannie Mae
What of the taxpayer-shareholders?
The trouble is, those measures could end up costing the new shareholders -- and under the new financial order, that’s the U.S. taxpayer.
The bright side is that taking steps to avoid foreclosure can be a rational economic course of action, if private-sector banks (is there any such thing anymore?) are any example. Homes that are in foreclosure lose value more quickly than those that remain inhabited, for example.
Things aren’t getting simpler for bank investors
A financial crisis typically creates superb investing opportunities among financial stocks. However, a fluid regulatory environment and the extent of government intervention require that investors be extra cautious when navigating waters that have become increasingly murky.