In response to a letter from Sen. Chuck Grassley, R-IA, that questioned some of the decisions surrounding the Preferred Stock Purchase Agreements, the Treasury fired back a response defending the PSPAs. The Treasury’s letter began by addressing “misconceptions” that Treasury and taxpayers have been repaid for the commitment of public funds to Fannie Mae and Freddie Mac. “Treasury did not make an ordinary loan to the enterprises; instead, it committed and continues to make available, hundreds of billions of dollars of capital, an amount that far exceeds the $187.5 billion in funding drawn by the enterprises to date,” the letter said.