Fannie and Freddie “Rescue” Could Cost Taxpayers $25 Billion
Posted in Government/Politics, Investing on July 22nd, 2008 by Chip GibbonsI thought they said Fannie Mae and Freddie Mac were not in trouble.
Now they say it could cost taxpayers as much as $25 billion to bail them out.
WASHINGTON (AP) — A federal rescue of troubled mortgage giants Fannie Mae and Freddie Mac could cost taxpayers as much as $25 billion, Congress’ top budget analyst said Tuesday.
But Peter R. Orszag, director of the Congressional Budget Office, predicted in a letter to lawmakers that there’s a better than 50 percent chance the government will not have to step in to prop up the companies by lending them money or buying stock.
Congress is expected to vote this week on a housing measure that would give the Treasury Department authority to throw Fannie and Freddie a temporary lifeline.