Tweet [1]
From Yahoo news [2] (HT: Drudge [3]):
The mounting price tag for the rescue of Fannie and its goverment-sponsored sibling, Freddie Mac, is surpassed only by insurer American International Group Inc., which has received $182.5 billion in financial support from the government so far.
Fannie Mae’s new request for $10.7 billion from the Treasury Department will bring the total for Fannie and Freddie to nearly $96 billion. Freddie is expected to report its quarterly results on Friday.
The government has budgeted $400 billion for Fannie and Freddie’s losses. I wonder if it will be enough. If I understand the data correctly, the Fed bought about $600 billion of Fannie and Freddie’s assets. Wonder what they will ultiamtely be worth.