Conservatorship for Fannie and Freddie is good for the country, so the sell goes, according to Secretary Paulson. Remembering, conservatorship is a side term for nationalization. Formal nationalization will have to be approved by Congress. Then, the mortage business will be like the Post Office, the 3rd Army, and the Washington Monument.
Thus far, I have learned nothing about indictments, although a lot went wrong for a long time. Future tax credits were considered capital for bookkeeping make-up. As for the firing of CEO’s and executives; not so fast, some will remain as consultions!
There are all kinds of moral, ethical, and philosophical issues involving this action, as well as political, if you consider Congress watched passively for a very long time. But in the end Wall Street wins and taxpayers i.e. our children and grandchildren, lose.
A lasting moral to this whole sorry episode is that you don’t mix government and private business. When it does happen you can expect inequities, corruption, favoritism, stealing and most any other vice you can think of.