By Robert Romano
The total taxpayer tab for the government bailout of Fannie Mae and Freddie Mac could total $363 billion under a worst-case scenario,
according to the Federal Housing Finance Agency (FHFA). That scenario
assumes further declines in housing prices, which many analysts are
It could even be worse than that, however.
Right now, the Government Sponsored Enterprises (GSEs) that helped
cause the housing bubble in 2000’s and the financial crisis that
followed with loose lending standards have an unlimited credit line
from the U.S. Treasury. The bailouts have already cost $148 billion,
and although the unlimited credit line expires at the end of 2012,
after that the companies will be entitled to another $275 billion, according to former chief credit officer of Fannie Mae Edward Pinto.
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