Friday, December 25, 2009

Did I Forget To Mention You've Been Fleeced? (Part 87,937)

clipped from

I'm certain the Obama Administration fully intended for this be lost in the holiday shuffle:

The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress.

Freddie Mac disclosed that they had received approval from their federal regulator to pay $42 million in Wall Street-style compensation packages to 12 top executives for 2009.

The struggling quasi-private mortgage and loan companies have no incentive to clean up their acts so long as they've got the taxpayer's ATM card. President Obama knows this, of course. Cleaning up would mean taking on fewer risky borrowers.

Treasury is re-writing the terms of the agreement when Fannie and Freddie were taken into conservatorship last year because Obama doesn't want to have to ask Congress for another bailout.