If you are frustrated because taxpayer money is bailing out the GSEs due to mortgages losses, how do you feel about taxpayer money defending former Fannie/Freddie execs? [Thanks L!]
A watchdog agency said Wednesday that the legal tab for former leaders of mortgage finance giantsFannie Mae and Freddie Mac is at least $110 million.
And taxpayers have paid at least $47 million of it, according to an Office of Inspector General of theFederal Housing Finance Agency report.
And the total bill could be even higher since the inspector general report focused on only one particular legal case against Fannie Mae, and isn’t an exhaustive account of the housing giants’ legal bills, reportedly more than $160 million, according to a 2011 congressional hearing.
Edward DeMarco, acting director of the FHFA, outlined a plan today to try and wind down the GSEs and return the mortgage market back to the private sector. It’s not likely to happen anytime in the near future though. In the meantime, taxpayers will continue to throw money into the hole.