Fannie Mae, Freddie Mac Bailouts Could Hit $363 Billion
October 21st, 2010Via: Los Angeles Times:
The taxpayer bailouts of housing finance giants Fannie Mae and Freddie Mac could cost as much as $363 billion through 2013, according to government projections released Thursday.
The Federal Housing Finance Agency, which has regulated the former government-sponsored enterprises since they were seized during the financial crisis in 2008, said the figure was based on the worst of three scenarios for the economy and housing market that assumes a “deeper second recession.”
Under the best-case scenario, which would be a “stronger near-term recovery” in housing prices, the bailouts of Fannie and Freddie would reach $221 billion. The third scenario, in which housing prices continue on their current projections, would result in the combined bailouts reaching $238 billion.
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So far, Fannie and Freddie have received about $148 billion in taxpayer money since they were seized by Bush administration officials and placed in government conservatorship. Taxpayers now own 79.9% of the two companies.
