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FBN's Peter Barnes on taxpayers paying for former Fannie Mae and Freddie Mac executives' legal fees.
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Thanks for coming on appreciate it.
You know while we're talking about housing we'll get back to the market rally at a moment but we do have some breaking views as the Fox Business Network has been able to confirm.
Those legal fees incurred by six former executives of Fannie Mae and Freddie Mac.
We'll have to be paid for by.
And you guessed it the US taxpayer the other executives currently being sued -- SEC story that we talked about last week and Peter Barnes -- DC with more.
Taxpayer expense Peter out.
Now that's right -- Fannie Mae and Freddie Mac will pay the legal expenses of six executives charged with securities fraud on Friday by the SEC.
Because Fannie and Freddie are now owned by the taxpayers that -- taxpayers will be footing the legal bill as they have been all along.
In February as -- call congressional investigators found the taxpayers had already paid a 162 million dollars defending the companies and former top executives in civil lawsuits accusing them of fraud and under investigation.
This after the treasury has paid more than a 180 billion dollars to bail the companies out.
Now back in February the head of the Federal Housing Finance Agency which oversees Fannie and Freddie said he approved paying the fees because that was standard corporate practice and employment contracts.
And that if the government canceled the legal protections which it could.
It might make it harder to attract skilled managers to these troubled companies the companies will now cover the legal -- of former Fannie Mae CEO Daniel -- And former Freddie Mac CEO Richard Syron and four of their senior deputies the FCC has accused them of lying to investors about the true nature of their holdings in sub prime mortgages which helped to tank both companies a spokesperson for the FHFA just got back to me and says quote.
As with other that this is from this one's from Fannie -- I can only say that we will honor our contractual obligations.
The FHFA spokesperson says quote has -- other corporations operating under longstanding established laws Fannie Mae and Freddie Mac advanced legal fees such fees can be recouped that and individuals convicted of fraud or certain other.
Violations of law.
-- back to you Peter Barnes with the breaking news out of DC how about that we the tax -- on the hook for Fannie and for.
