All Commentary
Monday, January 24, 2011

Taxpayers Paying Fannie’s, Freddie’s Legal Bills


“Since the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending the mortgage finance companies and their former top executives in civil lawsuits accusing them of fraud. The cost was a closely guarded secret until last week, when the companies and their regulator produced an accounting at the request of Congress…. The legal payments show no sign of abating. ” (New York Times)

But the big bucks raked in by the executives over the years are safely beyond the taxpayers’ reach.

FEE Timely Classic
“Nationalization of the Mortgage Market” by Robert P. Murphy