Unlimited credit for GSEs seen as backdoor bailout

Reuters ^ | 1/6/11 | Corbett B. Daly

[FromLori]

At a hearing last fall, U.S. Treasury Secretary Timothy Geithner told lawmakers that he and his team were working to put the $700 billion financial bailout fund "out of its misery." But some in Washington now see a second, backdoor bailout in its place.

On December 24, the Obama administration announced it was extending an unlimited credit line to mortgage finance agencies Fannie Mae FNM.N and FRE.N Freddie Mac, which would keep them afloat no matter how high their losses.

[FromLori]

“And Darrell Issa, the top Republican on the House Oversight and Government Reform Committee, called it “a continuation of the bailout policies that have mortgaged away the future solvency of our country.”

Suck it up taxpayers the banks will give you ONE CENT on the dollar back if we’re lucky!

BofA Freddie Mac Putbacks Resolved for 1¢ on $

http://www.ritholtz.com/blog/2011/01/bofa-putbacks-freddie-mac/

[whitedog57]

BofA, Wells, etc originate, F&F buy them. Both allowed to exist if they fund LaRaza, CRA and related programs.

Repubs defend the big banks who need F&F. That is why this tumor will continue to grow.

[Razzz42]

With the accounting rule changes (FASB) GSEs and everyone else can claim their paper holdings are worth whatever they want them to be during the life of the loan period even if priced at worthless in today’s market place. GSE’s hold 95% of US mortgages because the banksters dumped bad paper bets unto the taxpayers, as in bailout. It still continues.

The best way to steal money is by owning a bank.

[FromLori]

“Repubs defend the big banks who need F&F. That is why this tumor will continue to grow.”

The Enemy within then that’s what those who support them are!

All those big global banks supported obama and donated to Acorn and the small American banks who didn’t were wiped out.