Posted on 12/26/2009 6:48:21 AM PST by FromLori
The Obama administration's decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.
The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.
Unlimited access to bailout funds through 2012 was "necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.
"The timing of this executive order giving Fannie and Freddie a blank check is no coincidence," said Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee. He said the Christmas Eve announcement was designed "to prevent the general public from taking note."
So far, Treasury has provided $60 billion of capital to Fannie and $51 billion to Freddie. Mahesh Swaminathan, a senior mortgage analyst at Credit Suisse in New York, said he didn't believe Fannie and Freddie would need more than $200 billion apiece from the Treasury. But he and other analysts have said the market would find a larger commitment from the Treasury reassuring.
The Treasury removed the cap on the size of available bailout funds by amending agreements it reached with the companies in September 2008, when the government seized control of the agencies under a legal process called conservatorship. The agreement allowed the Treasury to make amendments through the end of the year, without the consent of Congress. Changes made after Dec. 31 would likely involve a struggle with lawmakers over the terms.
Some Republicans are angry the administration is expanding the potential size of the bailout without having a
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ACORN will be back in business in 2010. The Donkey Party needs those fraudulent votes in November to keep their majorities.
And it just keeps on flowing.................
Watch—at the end of the day, Judges will basically nullify many of these “Liar” (Ninja) mortgages and give the houses away for practically free. And the US taxpayer will foot the bill. If you actually work & sacrifice to pay your mortgage, you are a sucker.
If we, the taxpayers, don’t bail out these failed institutions how will their executives get their usual bonuses. They certainly can’t be expected to take what the institution can afford or what they deserve.
I bought a buttload of FNM’s penny stock back in July figuring that the government was going to spend my taxmoney to save it at all costs and I might as well try to get some of it back.
Probably but so far very few have them have gotten that deal and only a handful of the modifications have worked and it seems everyone is walking away from their debt except us the taxpayers.
You know we already subsidized the bankers with the bailouts and unlimited lending at zero frankly I’m sick of paying for the bankers, the politicians and the people who buy houses they can’t afford.
Besides after seeing how much money the too big to fail banks donated to the democrats,obama,acorn and how they embraced the climate gate fraud to make billions I have ZERO sympathy for them and do not want to pay their bonus’s either.
The looting of America continues apace.
“Mahesh Swaminathan, a senior mortgage analyst at Credit Suisse in New York, said he didn’t believe Fannie and Freddie would need more than $200 billion apiece from the Treasury.”
Thanks, bruh, that is reassuring.
http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/
http://www.opensecrets.org/orgs/list.php?order=A
http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html
http://www.businessinsider.com/goldman-sachs-changes-its-status-to-financial-holding-company-2009-8
http://www.ritholtz.com/blog/2009/03/backdoor-bailouts-for-goldman-sachs/
http://www.noquarterusa.net/blog/2009/07/02/will-cap-and-trade-be-the-next-bubble/
http://www.salon.com/opinion/greenwald/2009/04/04/summers/
http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html
http://www.nytimes.com/2009/07/19/business/19dimon.html
http://www.americanthinker.com/2009/07/will_dems_allow_goldman_to_man.html
U.S.gave ve up billions in tax money in deal for Citigroups bailout repayment
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504534.html?hpid=topnews
http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout/print
http://nlpc.org/stories/2009/09/27/taxpayer-owned-citigroup-still-bankrolling-acorn
http://nlpc.org/stories/2009/09/21/bank-america-acorn-%E2%80%98partner%E2%80%99-and-major-funder
Baloney it’s already a TRILLIONS of problems
http://online.wsj.com/article/SB10001424052970204908604574334662183078806.html
The $4 trillion housing headache
http://money.cnn.com/2009/05/27/news/mortgage.overhang.fortune/index.htm
Why is the Real Estate Industry so heavily subsidized?
2nd question why is it that corporate welfare only garners a fraction of the outrage that individual welfare appears to around here?
Obama administration "to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years."
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To the Dems, Christmas Eve was nothing more than a convenient cover for announcing unpopular political actions (i.e., bailouts to Fannie/Freddie and Senate passage of health care).
#2 People don't see it and don't understand it.
Me thinks it is all a ponzie scheme. Tarp money went to buy 500 billion in t-bills (household buyers), Health care tax will be used to replace/ repay ( why we will pay 4 years before it's enacted)the printed tarp monies. This is America, land of the greed.
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