Battle Lines Drawn in Freddie, Fannie Fight

Deficit makes coordinated response economically, psychologically crucial

(NEWSER) - A global storm continues to threaten the world’s economies, and the US government takeover of Fannie Mae and Freddie Mac is just one step, albeit a major one, toward recovery. Whether the latest attempt to right the ship succeeds "ultimately boils down to two big issues," writes Mohamed El-Erian in the Financial Times. Underlying both is the reality of globalization. More»

(NEWSER) - Freddie Mac, the swamped mortgage giant seized by the government two months ago, asked for $13.8 billion from the Treasury today after a record quarterly loss plunged its net worth into the negative, Bloomberg reports. Sister company Fannie Mae, also under government control, said this week it might need funds beyond the $100 billion previously earmarked for each of the firms before the end of the year. More»

Skilled immigrants would help end slump, he says

(NEWSER) - Alan Greenspan said housing prices could continue to edge lower through 2009, but should “stabilize or touch bottom” in the first six months of the year, reports the Wall Street Journal. And, the former Fed chief says, while a government bailout of Freddie Mac and Fannie May was the right thing to do, the companies should have been nationalized. More»

That would be nearly twice what they've received so far

(AP) - The government spelled out today just how much the most expensive rescue of the financial crisis will end up costing taxpayers—as much as $259 billion for mortgage buyers Fannie Mae and Freddie Mac. By contrast, the combined bailouts of financial companies and the auto industry have cost taxpayers roughly $50 billion, and the bailouts of Wall Street banks alone, which sparked public fury, have so far brought taxpayers a $16 billion return. More»

(NEWSER) - Executives at government-owned mortgage giants Fannie Mae and Freddie Mac are scheduled to receive six-figure retention bonuses, but Barney Frank wants the payments canceled, MarketWatch reports. “In this troubled economy, and in this job market, it is difficult to imagine that the companies would not be able to find competent and talented replacements for anyone who chooses to leave,” the House Financial Services chair said in a letter to a federal regulator. More»