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Freddie — already propped up with $52 billion in taxpayer funds used to rescue the company from its own mistakes — recorded a loss of $6.7 billion and said it would require an additional $10.6 billion from taxpayers to shore up its financial position.
The news caused nary a ripple in the placid Washington scene. Perhaps that’s because many lawmakers, especially those who once assured us that Fannie and Freddie would never cost taxpayers a dime, hope that their constituents don’t notice the burgeoning money pit these mortgage monsters represent.
And...what did Barney Frank (D) say the day before this report came out?
In the memo, a copy of which was obtained by POLITICO, Frank made the case that Freddie and Fannie are being managed responsibly, and aren’t doing further economic damage to themselves now that they’ve been taken over by the government.
But events late Wednesday made it politically difficult for Frank to make that case – Freddie Mac reported that it had lost $8 billion for the quarter and would likely need more than $10 billion in additional aid from the government.
Any bank reform bill that does not include this too big to fail monstronsity, that is holding trillions in mortgages (a lot of them, bad) should be vigorously opposed.
Frank is imploring the White House to take up the argument that F&F should be left out of it.
F&F were at the nucleus of the financial meltdown in 2008.
Can anyone, anyone at all, give me a good reason WHY they should not be included in financial/bank reform?
Those two are pretty much government owned and can do what they want.
If they were included then they couldn't get their next "allowance" check from the government.
They are both bleeding red and can't stand by themselves anymore....too many bad mortgages to unqualified people.
Only non-government owned/controlled entities need "reformed" don't ya know.
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