Perchoutofwater Posted October 21, 2010 Share Posted October 21, 2010 Tab for Fannie, Freddie could soar to $259BAP By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer – 36 mins ago WASHINGTON – The government spelled out Thursday just how much the most expensive rescue of the financial crisis will end up costing taxpayers — as much as $259 billion for mortgage buyers Fannie Mae and Freddie Mac. That figure would be nearly twice the amount Fannie and Freddie have received so far. By contrast, the combined bailouts of financial companies and the auto industry have cost taxpayers roughly $50 billion, according to the Treasury Department's latest projections. And the bailouts of Wall Street banks alone, which sparked public fury, have so far brought taxpayers a $16 billion return. Fannie and Freddie could end up costing taxpayers between $142 billion and $259 billion through 2013, the Federal Housing Finance Agency projected Thursday. Those figures take into account dividends that the agency estimates the two companies will end up paying the government: Between $80 billion and $104 billion over the next three years. The two mortgage finance companies have been operating under federal control for more than two years after nearly collapsing because of the housing bust. When the government stepped in to take them over in September 2008, their rescue was expected to cost only a combined $200 billion. Fannie and Freddie have already received $148 billion from the government. But they have paid back $13 billion in dividends so far. The terms of their rescue require them to pay a 10 percent annual dividend to the Treasury Department. Thursday's estimate was the first time the housing agency has released a public estimate of the taxpayer tab. The combined bailout of the two mortgage companies is on track to be the largest of the financial crisis. Compare that with what was once the most expensive single bailout — American International Group Inc. That is now projected to cost taxpayers only $5 billion. Even that bailout could turn a profit, Treasury said this month, if its sale of AIG shares succeeds. The Obama administration's rescue of the U.S. auto industry is projected to cost $17 billion, Treasury has said. Link I'm glad we through out common sense lending standards in order to make political hay giving loans to people who could in no way qualify for them 30 years ago. Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted October 21, 2010 Share Posted October 21, 2010 At least Fannie and Freddie now have new oversight and regulations to make sure that the same thing doesn't ever happen again... right? Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted October 21, 2010 Author Share Posted October 21, 2010 At least Fannie and Freddie now have new oversight and regulations to make sure that the same thing doesn't ever happen again... right? No, the financial reform bill failed to address the two, which makes the financial reform bill a joke. Quote Link to comment Share on other sites More sharing options...
matt770 Posted October 21, 2010 Share Posted October 21, 2010 No, the financial reform bill failed to address the two, which makes the financial reform bill a joke. Wellll, certainly these house prices have to stop plummeting at some point....right?? Quote Link to comment Share on other sites More sharing options...
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