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True Cost of Fannie, Freddie Bailouts: $317 Billion, CBO Says

Posted By admin On June 6, 2011 @ 8:32 am In Money Watch | Comments Disabled

Matt Cover
CNS News [1]
June 6, 2011

The Congressional Budget Office (CBO) says the real cost of the federal government guaranteeing the business of failed mortgage giants Fannie Mae and Freddie Mac is $317 billion — not the $130 billion normally claimed by the Obama administration.

In a report delivered to the House Budget Committee on June 2, the CBO said a “fair value” accounting of guaranteeing the two defunct mortgage companies – known as Government Sponsored Enterprises (GSEs) – was more than twice as high as the Office of Management and Budget had accounted for.

“Specifically, CBO treats the mortgages guaranteed each year by the two GSEs as new guarantee obligations of the federal government,” the CBO report [2] said. “For those guarantees, CBO’s projections of budget outlays equal the estimated federal subsidies inherent in the commitments at the time they are made.”

“In contrast, the Administration’s Office of Management and Budget continues to treat Fannie Mae and Freddie Mac as nongovernmental entities for budgetary purposes, and thus outside the budget,” the report stated. “It records as outlays the amount of the net cash payments provided by the Treasury to the GSEs.”

Full article here [1]

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True Cost of Fannie, Freddie Bailouts: $317 Billion, CBO Says  161008pptv3 [4]

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URLs in this post:

[1] CNS News: http://cnsnews.cloud.clearpathhosting.com/news/article/true-cost-fannie-freddie-bailouts-317-bi

[2] CBO report: http://www.cbo.gov/ftpdocs/122xx/doc12213/06-02-GSEs_Testimony.pdf

[3] Stock up with Fresh Food that lasts with eFoodsDirect (AD): http://www.efoodsdirect.com/

[4] Image: http://prisonplanet.tv/

[5] Fannie Mae, Freddie Mac bailouts could hit $363 billion, report says: http://www.prisonplanet.com/fannie-mae-freddie-mac-bailouts-could-hit-363-billion-report-says.html

[6] Fannie-Freddie Fix at $160 Billion With $1 Trillion Worst Case: http://www.prisonplanet.com/fannie-freddie-fix-at-160-billion-with-1-trillion-worst-case.html

[7] Hank Paulson Wants To Fix Fannie And Freddie By… Recreating Fannie And Freddie: http://www.prisonplanet.com/50651.html

[8] Cost of Seizing Fannie and Freddie Surges for Taxpayers: http://www.prisonplanet.com/cost-of-seizing-fannie-and-freddie-surges-for-taxpayers.html

[9] U.S. Considers Bringing Fannie Mae, Freddie Mac on to Budget: http://www.prisonplanet.com/us-considers-bringing-fannie-mae-freddie-mac-on-to-budget.html

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