Rescuing mortgage buyers Fannie Mae and Freddie Mac could cost as taxpayers as much as $363 billion over the next three years, more than double the current amount, a federal regulator said Thursday.
The two companies could end up costing taxpayers $221 billion to $363 billion through 2013, the Federal Housing Finance Agency projected. The actual amount will depend on whether home prices stabilize or take another dive, the agency said. …
When the government stepped in to take them over in September 2008, the rescue was only expected to cost a combined $200 billion. Fannie and Freddie have already received $148 billion from the government.
It’s the first time the agency has released a public estimate of the taxpayer tab. The combined bailout of the two companies is on track to be the largest of the financial crisis.
- Obama administration removed the $400 Billion cap on the Fannie/Freddie bailout.
- D.C. just this summer said reforming Fannie/Freddie would be “too complicated” to do now so left them untouched in the Wall Street regulation bill passed this summer. Punting, promising to review the situation of the big campaign contributors sometime in the future.
Ed Morrissey of HotAir suggests reading this recent book for “one of the best and most concise analyses I’ve yet read” of Fannie/Freddie.