Taxpayers Foot Legal Bills for Fannie and Freddie Execs

It's a really bad deal for taxpayers that a federal watchdog is suggesting that the government only “limit,” but not stop, the exorbitant legal fees that Fannie Mae and Freddie Mac are now paying on behalf of former executives who are accused of either securities or accounting fraud, and who drove these companies into the ground. Both have paid nearly $100 million in legal fees to defend former executives, who have been named along with Freddie and Fannie, as defendants in a string of lawsuits seeking billions of dollars in damages alleging securities fraud for Freddie, and accounting and securities fraud for Fannie. A third of those legal fees came after the government seized Fannie and Freddie. Continue reading this article

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