The Washington Times
  • Subscribe
  • Times News Services
  • RSS
  • Mobile Headlines
  • e-edition
  • E-MAIL ALERTS
  • REGISTER
  • LOG IN
  • E-MAIL ALERTS
  • WELCOME
  • Your Profile
  • Log Out
  • Front Page Image
  • Classifieds
  • Autos
  • Real Estate
  • Jobs
  • Special Sections
  • Customer Service
  • Home
  • News
  • Opinion
  • Sports
    • NFL
    • NBA/WNBA
    • MLB
    • NHL
    • Tennis
    • Golf
    • Motorsports
    • Soccer
    • NCAA
    • Olympics
    • Outdoors
    • Other
  • Culture
    • Home & Living
    • Family & Kids
    • Fashion
    • Food
    • Travel
    • Health
    • Washington Visitors
    • Books
    • Military History
    • Life
    • Auto
    • TV Listings
    • Movie Listings
    • Death Notices
    • Entertainment
  • Themes
  • Communities
  • Shopping
    • Stores
    • Coupons
    • Daily Double
    • Promotion
    • How It Works
  • Videos
    • Two Guys
    • Birnbaum on Washington
    • Liz Glover
    • Amanda Carpenter
    • Morning Briefing
    • Documentaries
    • Joe Giganti
    • Video Game Minute
  • Podcasts
    • About Headlines
    • Audio and Radio
    • America's Morning News
  • National

    PRUDEN: Obama's due process doctrine

  • National

    U.S. links 8 to Somali terrorist group

  • Business

    Home sales surge 10.1 percent in October

  • Local

    Fenty trails Gray in D.C. poll

  • Politics

    S.C. governor faces 37 ethics violations

  • National

    China holds lawyer who tried to see Obama

  • World

    Israel-Hamas prisoner swap talks advance

Home » News » Energy

Wednesday, July 23, 2008

Fannie, Freddie rescue estimated at $25B

Rate this story

Average 0.00
after 0 votes
Login or register to rate this story

CBO assumes turnaround in market

  • Font Size -+
  • Print
  • Email
  • Comment
  • Tweet this!
  • Share
  • Article
  • Comments ()
  • Click-2-Listen
  • Videos
Please stand by, images loading!
  • GETTY IMAGES
Treasury Secretary Henry M. Paulson Jr. urges Congress to act quickly to aid Fannie Mae and Freddie Mac.

More Energy Stories

  • Va. Supreme Court upholds power line
  • 3 senators join forces to rescue climate bill
  • McDonnell ticket leads race for cash, votes
  • Zero-emissions ultracapacitors recharge in minutes

By Patrice Hill

The Bush administration's plan to rescue Congressional Budget Office said Tuesday. That assessment stands in stark contrast to the Treasury's prediction that a bailout of the mortgage giants would be virtually cost-free.

The nonpartisan agency's relatively modest estimate — about the cost of funding two months of the Iraq war — assumes that the housing market improves next year. The tab could go considerably higher if the market does not reverse course.

The government expects to spend $6 billion to $7 billion to close Federal Deposit Insurance Corp., who added that more bank failures are likely. The government must raise banks' insurance premiums to prevent higher costs to taxpayers, she said.

The bailout plan for Fannie and Freddie is pending in Congress, where many Republicans have balked at the potential cost. Few raised objections on Tuesday, however, to CBO's price tag.

Democratic leaders generally support the Treasury's plan and welcomed the CBO's assessment, saying they were relieved that the bill would not be higher.

"That's good news," said Senate Budget Committee Chairman Kent Conrad, North Dakota Democrat.

New York, where he described the mortgage giants as "vital" to the housing and financial markets and the "most interconnected of all global financial institutions" because their bonds and the mortgage pools that they guarantee are purchased around the world.

Housing activity likely would grind to a halt in the United States without Fannie and Freddie, which this year have provided the financing for 80 percent of all new mortgages. The agencies' role in sustaining the housing market grew substantially after the private market for mortgages collapsed last year.

Mr. Paulson argued that the rescue plan would be virtually cost-free because he won't have to use the authority to buy the agencies' bonds and stocks. Just having the authority will convince investors that Fannie and Freddie are sound and bolster financial markets enough to avoid a financial emergency, he said.

The Treasury's authority would expire at the end of next year.

[Get Copyright Permissions] Click here for reprint permissions!
Copyright 2009 The Washington Times, LLC

12Next »

Post a comment

There are comments on this article, submit your opinion!

Please login or register to post a comment

Ask a Question

You Report

Do you have another point of view, photos, audio, video or more information about a story?

Top Stories

Most Read

  1. EDITORIAL: Hiding evidence of global cooling
  2. Top Republican lawmakers not attending State Dinner
  3. Islamic center in Maryland keeps ties to Iran
  4. EDITORIAL EXCLUSIVE: On terrorists, Justice recused
  5. Religious leaders vow civil disobedience on anti-life issues
More Top Stories »
  1. KELLNER: New Apple mouse really is 'Magic'
  2. Massive bill steals show in health care debate
  3. Report: D.C. schools chief Rhee mishandled sexual misconduct scandal
  4. Company that repaired Chairman Gray's house lacked license
  5. EDITORIAL: Gunning for Sarah Palin

Most Shared

  1. EDITORIAL: Hiding evidence of global cooling
  2. The United Socialist States of America
  3. Top Republican lawmakers not attending State Dinner
  4. PRUDEN: Obama's due process doctrine
  5. Ego of 'O': It's all about him
More Top Stories »
  1. Fenty trails Gray in D.C. poll
  2. Conservatives seek test for RNC funds
  3. Religious leaders vow civil disobedience on anti-life issues
  4. LETTER TO EDITOR: When family ties die
  5. Food snobs fork over $225 for taste of heritage turkey

Most Commented

  1. EDITORIAL: Hiding evidence of global cooling
  2. Top Republican lawmakers not attending State Dinner
  3. Lobbyists spending big to shape health care debate
  4. Conservatives seek test for RNC funds
  5. PRUDEN: Obama's due process doctrine
More Top Stories »
  1. Work site arrests of illegals fall dramatically
  2. Schumer: Dems will pass health bill alone
  3. Green energy stimulus growing few jobs
  4. EDITORIAL: Schumer's change of heart
  5. Ego of 'O': It's all about him

Listen to Washington Times Radio

  • America's Morning News

    with John McCaslin and Melanie Morgan

Question of the day

Do you think the White House should have invited more Republicans to the state dinner honoring Indian Prime Minister Manmohan Singh?

Blogs & Columns

  • Hot Button Blog

    RNC: Breast cancer recommendations may lead to 'rationing'

  • Belief Blog

    Evangelicals OK civil disobedience

  • Out of Context

    Foods that might kill libido

  • On the Fly

    United lifts some 'award' blocking

  • Technology

    Facebook wins round against phishing spammer

  • Redskins 360

    Vision problems for Portis

  • SNOBlog

    Beyond 'Woody'

Videos

Advertising Links
TWT Store
  • e-edition
  • Print Edition
  • Weekly Washington Times
TWT Affiliates
  • Middle East Times
  • Golf
  • UPI
  • Arbor Ballroom
  • Washington Times Global
  • About TWT
  • Press Room
  • F.A.Q.
  • Work for TWT
  • Advertise
  • Sponsors
  • Contact Us
  • Privacy Policy
  • Site Map

All site contents © Copyright 2009 The Washington Times, LLC.