What is that giant sucking sound I hear? More taxpayer dollars spent to keep these dead(beat) "essential to life on planet earth agencies"on life support.
Gotta' keep those bankers in the lifestyle which they have become accustomed, even if it breaks all of us to do it!
NEW YORK (CNNMoney.com) -- Mortgage finance giants Fannie Mae and Freddie Mac were ordered by their federal regulator to no longer trade their shares on the New York Stock Exchange, the agency announced Wednesday. Both stocks plummeted on the news.
The Federal Housing Finance Agency (FHFA) and its predecessor agency have overseen the operation of Fannie Mae and Freddie Mac since September 2008, when they were both placed under conservatorship, a form of control similar to what is found in a bankruptcy process. Since that time, the Treasury Department has poured $83.6 billion into Fannie Mae and $61.3 billion into Freddie Mac to cover losses on the trillions of dollars worth of mortgage-backed securities they own or guarantee.
Billions of additional losses are forecast in coming years, with the Congressional Budget Office estimating that nearly $400 billion in tax dollars will eventually be needed. The government controls the majority of the shares of each firm.
The Obama administration has used the blank check that Congress authorized to bailout the firms in July of 2008 to try and help shore up the still weak U.S. housing market.
Fannie Mae and Freddie Mac remain a key source of funding for banks and other mortgage lenders. Without Fannie Mae and Freddie Mac, lending to home buyers would have completely dried up, home sales and new housing construction would have fallen even more sharply and homes would have lost even more value.
But while the money given to Fannie Mae and Freddie Mac helped put a floor under the U.S. housing market and overall economy, the two firms have continued to hemorrhage money. The two firms posted combined losses of $93.6 billion in 2009 and another $18.2 billion in the first quarter. The Obama administration had said it would lay out its plan for their future at the start of this year, but has yet to do so.
[Note: What is left to do besides socialize these two massive pigs? No, wait, when the government owns the businesses and banks, isn't that COMMUNISM?]
More here (if you can stand it):