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WASHINGTON, DC-Fannie Mae and Freddie Mac will receive unlimitedfinancial assistance from the federal government – beyond the $400billion cap on emergency aid that was previously established.The Obama Administration delivered the open-ended commitment to GSEsFannie Mae and Freddie Mac on Christmas Eve – a week before aCongressionally mandated deadline to increase the amount of aid thatcould be provided to the GSEs was up.

Thus far, the two companies have received $111 billion in federal assistance, well short of the $400 billion cap. Simple math suggests that the Obama Administration might be anticipating aid in excess of $300 billion will be necessary.

In a statement, the Treasury Department has said the open-ended commitment is to assure markets of the government’s support. Treasury did not return a call to GlobeSt.com in time for publication.In a separate measure, Fannie Mae and Freddie Mac have receivedapproval to pay $42 million in compensation to top executives at theorganizations, with as much as $6 million each to the chief executives– news that has infuriated some in Congress. Many expect Congress and the Obama Administration to take up GSE reform once health care is out of the way.

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