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Fannie and Freddie... Costing Taxpayers too much?

Since the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending the mortgage finance companies and their former top executives in civil lawsuits accusing them of fraud. The cost was a closely guarded secret until last week, when the companies and their regulator produced an accounting at the request of Congress.The bulk of those expenditures — $132 million — went to defend Fannie Mae and its officials in various securities suits and government investigations into accounting irregularities that occurred years before the subprime lending crisis erupted. The legal payments show no sign of abating.

Documents reviewed by The New York Times indicate that taxpayers have paid $24.2 million to law firms defending three of Fannie’s former top executives: Franklin D. Raines, its former chief executive; Timothy Howard, its former chief financial officer; and Leanne Spencer, the former controller.......
Since Fannie Mae and Freddie Mac were taken over by the government in September 2008, their losses stemming from bad loans have mounted, totaling about $150 billion in a recent reckoning. Because the financial regulatory overhaul passed last summer did not address how to resolve Fannie and Freddie, Congress is expected to take up that complex matter this year.

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What would you like to see Congress do?

 
grlygrlz2

Asked by grlygrlz2 at 2:04 PM on Jan. 24, 2011 in Politics & Current Events

Level 39 (106,530 Credits)
This question is closed.
Answers (28)
  • The govt should have never been in the housing business to begin with. I think it is time to pull the plug.

    If people want to buy homes they should save 20% to 30% for the down payment, have at least 6 mos income set aside and be able to comfortably afford the payment. The taxpayers can no longer afford to subsidize the American dream. The American dream requires personal responsiblity and self sacrifice of the individual.

    yourspecialkid

    Answer by yourspecialkid at 2:12 PM on Jan. 24, 2011

  • The American dream requires personal responsiblity and self sacrifice of the individual.


    Answer by yourspecialkid


    The American dream isn't home-ownership...it's the notion that you can come from nothing, bust your ass, and be a successful, productive member of society. It has nothing to do with owning a home (that's just brain washing from real estate and mortgage company commercials).

    UpSheRises

    Answer by UpSheRises at 2:16 PM on Jan. 24, 2011

  • I disagree USR. The notion of having your own place built this country. That dream is one of things that brought people to this country, it is what fueled our push into the west. Home ownership is the fiirst hallmark of success.

    yourspecialkid

    Answer by yourspecialkid at 2:20 PM on Jan. 24, 2011

  • Franklin D. Raines, its former chief executive; Timothy Howard, its former chief financial officer; and Leanne Spencer, the former controller...

    I'd like Congress to see to it that they are hung on Main street!
    goodwitch399

    Answer by goodwitch399 at 2:25 PM on Jan. 24, 2011

  • I'd like Congress to see to it that they are hung on Main street!


    Answer by goodwitch399


    You naughty girl...no more metaphors, figurative language or sarcasm for that matter.

    UpSheRises

    Answer by UpSheRises at 2:27 PM on Jan. 24, 2011

  • I'd like Congress to see to it that they are hung on Main street!

    Answer by goodwitch399

    You naughty girl...no more metaphors, figurative language or sarcasm for that matter.

    I thought it was a good one. I wondered if anyone would catch it! LOL
    goodwitch399

    Answer by goodwitch399 at 5:30 PM on Jan. 24, 2011

  • Give me my money back.
    UpSheRises

    Answer by UpSheRises at 2:12 PM on Jan. 24, 2011

  • Up she rises- My husband refers to homes as " JUST a box that you put all your sh*t in"..He also refers to the home's location as "a camp site." Since we move for business quite a bit, he is always talking about finding another good camp site.

    Sisteract

    Answer by Sisteract at 2:43 PM on Jan. 24, 2011

  • Hand up Barney Franks and let the lot of them pay for their reckless running of the two.
    jesse123456

    Answer by jesse123456 at 7:26 PM on Jan. 24, 2011

  • The Government (we the people) needs to stop giving money to industries that that get behind the eight ball-especially when in many instances the very people who made the decisions that caused the crises walk away with fat pockets from a golden handshake. This practice has to stop, no matter the industry.


    In the scenario described by YSK above, fewer and fewer people would buy homes, which obviously would have a negative overall impact on many industries AND our  economy. In additon, IMO the new reality of home-ownership is that a home is not a nest egg...not meant to continue to increase substantially in value, over time, especially if few improvements are made. Homes are used and in many cases abused. What other material item do we utilize in this fashion and expect it to increase in value?

    Sisteract

    Answer by Sisteract at 2:21 PM on Jan. 24, 2011

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