Feb 13, 2011
When the dust settles, the federal bailout of Fannie Mae and Freddie Mac will be the most expensive government rescue of the financial crisis — it already stands at $153 billion and counting.
Even as the Obama administration unveiled its plan for reforming the firms, experts agree taxpayer losses are going to continue to climb, no matter what Congress eventually decides to do with them.
The Federal Housing Finance Agency, the government body that oversees the two mortgage giants, has estimated that losses through 2013 will require Treasury to pour another $68 billion to $210 billion into the firms on top of the money already used to prop-up the firms and the housing market.
“Regardless of what they do, even if they were to change their status tomorrow, none of that will change the losses that will be coming due on their existing book of business,” said Guy Cecala, publisher of Inside Mortgage Finance, an industry trade publication.
This article was posted: Sunday, February 13, 2011 at 5:50 am