This comes as no shock, of course, considering that its sister GSE asked for more than $10 billion on Thursday. Both Fannie Mae and Freddie Mac continue to lose money and continue to raid a Treasury line of credit funded by taxpayers to remain solvent. And oddly, this is something that apparently doesn’t concern Congress at all:
Fannie Mae requested another $8.4 billion from the federal government on Monday, saying that due to trends in the housing and financial markets, the company expects its deficits to continue. …
The request cames just four days after Fannie’s twin Freddie Mac also asked for a handout – to the tune of $10.6 billion – after posting an $8 billion quarterly loss.
In case you’re keeping score, that would bring Fannie’s cash to almost $85 billion. Freddie has spent over $50 billion. Under the original terms of the bailout, they would have already used more than half of the $200 billion Congress allocated for their rescue. The Obama administration lifted that limit in December, however, so neither GSE needs to worry about running out of cash. Only taxpayers have to worry about that, apparently.
The Senate is debating a financial reform bill that would supposedly curtail bailouts. However, the bill does nothing to free the American taxpayer from the obligations of Fannie and Freddie; in fact, the bill doesn’t even address the two lenders. Perhaps constituents should ask their Senators why that problem is being ignored while the two continue grabbing good money to rescue the bad.