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Experts say if the mortgage finance giants need to be bailed out, a government takeover would cost taxpayers far more than current estimates of $25 billion.
By Chris Isidore, CNNMoney.com senior writer
Last Updated: July 30, 2008: 7:31 AM EDT
NEW YORK (CNNMoney.com) -- When it comes to rescuing Fannie Mae and Freddie Mac, there's not likely to be any middle ground.
Treasury Secretary Henry Paulson hopes he'll never have to use the unlimited authority he has just received to bail out the mortgage giants. If he's right, the cost to taxpayers will be zero.
But if Treasury does have to rescue Fannie and Freddie, it's likely to cost far more than the current estimate of $25 billion - even well beyond the $100 billion worst-case-estimate from the Congressional Budget Office.
http://money.cnn.com/2008/07/30/news...ion=2008073007
By Chris Isidore, CNNMoney.com senior writer
Last Updated: July 30, 2008: 7:31 AM EDT
NEW YORK (CNNMoney.com) -- When it comes to rescuing Fannie Mae and Freddie Mac, there's not likely to be any middle ground.
Treasury Secretary Henry Paulson hopes he'll never have to use the unlimited authority he has just received to bail out the mortgage giants. If he's right, the cost to taxpayers will be zero.
But if Treasury does have to rescue Fannie and Freddie, it's likely to cost far more than the current estimate of $25 billion - even well beyond the $100 billion worst-case-estimate from the Congressional Budget Office.
http://money.cnn.com/2008/07/30/news...ion=2008073007