WASHINGTON, DC-The government’s unprecedented rescue effort ofthe US financial system is reaping mixed rewards--at least in asnapshot captured from findings of two separate agencies.
First there are the GSEs, Fannie Mae and Freddie Mac, which havebeen under government conservatorship since 2008. Although there isplenty of rhetoric about their eventual future paths, for the timebeing they will remain on government life support and the eventualtab could be a stiff one for taxpayers.
The Federal Housing Finance Agency calculates it could be atotal of $363 billion through 2013 if the housing market doesn’trecover or gets worse. Taxpayers would be on the hook for $259billion, with the remainder returning to Treasury as dividendpayments on senior preferred stock. So far Fannie Mae and FreddieMac have borrowed $148 billion and paid $13 billion individends.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
