Reply #2: That's not even the tip of the iceberg

[ipaint]

Treasury uncaps credit line for Fannie, Freddie

WASHINGTON (Reuters) - The Obama administration pledged on Thursday to back beleaguered mortgage finance giants Fannie Mae <FNM.N> and Freddie Mac <FRE.N> no matter how big their losses may be in the next three years.

It also jettisoned a demand that the two companies cut the size of their mortgage-related investment portfolios next year, allowing them to provide even more support in the near term for a housing market recovering from its worst slump in decades.

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/24/AR2009122402367.html




"Forget raising the cap to $800 billion for Fannie/Freddie. They announce (on Christmas eve no less) that the slush fund for picking up toxic mortgage is unlimited:

Treasury uncaps credit line for Fannie, Freddie

The Obama administration pledged on Thursday to back beleaguered mortgage finance giant Fannie Mae and Freddie Mac, no matter how big their losses may be in the next three years.

It also jettisoned a demand that the two companies cut the size of their mortgage-related investment portfolios next year, allowing them to provide even more support in the near term for a housing market recovering from its worst slump in decades.

As Ian Welsh notes, now that the Fed might actually be audited, what better place to stash all those toxic assets than at Fannie and Freddie, where there is no independent auditor since they sacked their own Inspector General?"

http://firedoglake.com/2009/12/24/treasury-okays-unlimited-slush-fund-for-fannie-freddie/


We are being robbed blind. Backdoor extension of tarp.