Hot Air » Blog Archive » US uncaps Fannie/Freddie support, announces during Christmas holiday.
Welcome to the new transparency:
The Obama administration’s decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.
The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.
Unlimited access to bailout funds through 2012 was “necessary for preserving the continued strength and stability of the mortgage market,” the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.
“The timing of this executive order giving Fannie and Freddie a blank check is no coincidence,” said Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee. He said the Christmas Eve announcement was designed “to prevent the general public from taking note.”
Treasury officials couldn’t be reached for comment Friday.
Woo Hoo!!! That’s great news for the management of those bankrupt entities! Now they can go back to getting their huge salaries and multimilion-dollar bonuses!
The lessone is: It really pays for some to be Obama supporters and cronies! The rest of us just get to pay for it.
Hope and Change = Hoax and Chains
Robert is right maybe we can get jobs? oh forgot not the right race.