A Merry Christmas for Fannie and Freddie?

[laughingliberal]

NEW YORK � The government has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie Mac.

The Treasury Department said Thursday it removed the $400 billion financial cap on the money it will provide to keep the companies afloat. Already, taxpayers have shelled out $111 billion to the pair, and a senior Treasury official said losses are not expected to exceed the government's estimate this summer of $170 billion over 10 years.

Treasury Department officials said it will now use a flexible formula to ensure the two agencies can stand behind the billions of dollars in mortgage-backed securities they sell to investors. Under the formula, financial support would increase according to how much each firm loses in a quarter. The cap in place at the end of 2012 would apply thereafter.

By making the change before year-end, Treasury sidestepped the need for an OK from a bailout-weary Congress.

http://www.huffingtonpost.com/2009/12/24/fannie-mae-and-freddie-ma_0_n_403413.html

Announced on Christmas Eve when few are paying attention, huh?

[laughingliberal]

1. Am I the only one who thinks this story sounds familiar? nt

[inna]

2. i already reacted:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4197859&mesg_id=4197988

[laughingliberal]

3. Ah, thank you. I missed that nt