'Bad Bank' would wipe slate clean for Fannie, Freddie by taking toxic loans
The Obama administration is considering an overhaul of Fannie Mae and Freddie Mac that would strip the mortgage finance giants of hundreds of billions of dollars in troubled loans and create a new structure to support the home-loan market, government officials said.
The bad debts the firms own would be placed in new government-backed financial institutions -- so-called bad banks -- that would take responsibility for collecting as much of the outstanding balance as possible. What would be left would be two healthy financial companies with a clean slate.
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That means the "bad loans" would then be totally owned by the taxpayers. Any loan not paid would be collected in additional taxes.
ReplyDeleteWith all the upside down foreclosures, we might see 25 cents on the dollar, if they sell at all over the years. Depression is just that.
ReplyDeleteWhat does he care? I read somewhere when all that was going on that the usurper (I won't even say his name anymore) made like 60 million off Fannie Mae but the MSM only talked about the 2 million McCain made.
ReplyDeleteAnd yes, of course, it'll be our burden to pay this crap back...I say let em ALL go bankrupt; other businesses will take their places.