Caruso-Cabrera: Fretting About Fannie
Friday night, note the timing, Fannie Mae said they will need another $15 billion in cash from the government (that's you and me, the taxpayers). That brings the Fannie and Freddie total to $126.9 billion thus far, but with more to come, according to both companies.
The Congressional Budget Office estimates Fannie & Freddie cost us a total of $389 billion by 2019. That includes all the subsidies they are providing in an effort to keep mortgage rates low, and support the housing market.
And people are mad about Citi and Bank of America getting $45 billion (which they have paid back by the way)?
But Fannie and Freddie money is just going to money heaven. And as Rome burns, what is the White House doing? Kicking the can down the road. When Treasury Secretary Tim Geithner testified in front of Congress last month about the budget, he was asked about Fannie & Freddie. He says they are coming up with a plan....in 2011!!
The White House originally said they would have plan for what to do with Fannie & Freddie when the budget came out.