Fannie Mae and Freddie Mac Bail out update 1
Posted on 10, July 2014
Fannie Mae and Freddie Mac Bail out update
The U. S. government made money in the long run but is it worth it.
The federal government bailed out the two housing finance giants commonly known as Fannie Mae and Freddie Mac almost six years ago. The government seized the two so-called “government-sponsored enterprises” amid loan losses that threatened their solvency in the financial crisis of 2008.
U.S. taxpayers gave Fannie Mae and Freddie Mac for more than $187 billion. This helped prop up both Fannie and Freddie. They have returned to profitability and have paid more than $213 billion in dividends to date, which is more than they received in support.
Since 2008, Congress has debated with how to reform Fannie and Freddie to help ensure that the government is never in the position of having to bail them out again. That debate is now pushed back to 2015.