WASHINGTON, DC-The government’s unprecedented rescue effort of the US financial system is reaping mixed rewards--at least in a snapshot captured from findings of two separate agencies.
First there are the GSEs, Fannie Mae and Freddie Mac, which have been under government conservatorship since 2008. Although there is plenty of rhetoric about their eventual future paths, for the time being they will remain on government life support and the eventual tab could be a stiff one for taxpayers.
The Federal Housing Finance Agency calculates it could be a total of $363 billion through 2013 if the housing market doesn’t recover or gets worse. Taxpayers would be on the hook for $259 billion, with the remainder returning to Treasury as dividend payments on senior preferred stock. So far Fannie Mae and Freddie Mac have borrowed $148 billion and paid $13 billion in dividends.
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