Fannie Mae and Freddie Mac have quite the tab
Over the past few years, mortgage houses Fannie Mae and Freddie Mac have been placed in conservatorship. The government has been in charge, and the companies have been given massive amounts of money in bailout funds. The emergency loans given to the mortgage houses were not from TARP funds, and taxpayers are starting to protest that the tab is too big a burden. The afflicted firms have become targets of protest, and perhaps rightly so.
Fannie Mae and Freddie Mac tabs expected to rise
Recently, Fannie Mae went back to the government, asking for $8.4 billion more in loans, after posting a an $11.5 billion loss for the first quarter of 2010. Freddie Mac also dropped a lot of revenue for the quarter, and it saw $6.7 billion go down the drain. Granted, that isn’t as bad as their losses from a year ago, but Freddie Mac is asking for an additional $10.6 billion from taxpayers. Aside from these two requests, that brings the total tab to almost $145 billion, according to CNN Money.
Not including the TARP bailout
The funds already allocated to Fannie Mae and Freddie Mac are not part of the Troubled Asset Relief Program. The Congressional Budget Office, according to CNN, estimates that the toxic twins will end up costing taxpayers $389 billion by 2019.
Final Fannie Mae tab hard to tell
It’s tough to say what the final cost of the bailout and takeover of Fannie Mae and Freddie Mac will be. The Congressional Budget Office and the Office of Management and Budget (the counterpart office that reports to the President) have conflicting viewpoints. One will insist they belong to a particular part of the budget, another will keep them off the books. To be fair, the CBO has made mistakes, and some pretty famous ones. One wonders how long it will be before Fannie Mae and Freddie Mac will be on YouCut.