Fannie, Freddie Delisting and the Fix Could Cost $1 Trillion
Things aren’t going well for Fannie Mae and Freddie Mac. First, the Federal Housing Finance Agency told them to delist from NYSE, and now, the real price tag of fixing the agencies is coming to light.
In an interview below, Anthony Sanders, a professor of real estate finance at George Mason University, who was called to testify before the House Financial Services Committee, says we should be “very concerned” about Fannie and Freddie, which have become a “huge problem” for a nation with ballooning debt.
How big? Fannie and Freddie guarantee almost $6 trillion in mortgages, and the potential cost of fixing them will be the largest US bailout ever, potentially up to $1 trillion.
Of course, back in March Tim Geithner essentially said he was “on it,” but, according to this interview, nothing’s been done.