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We bail them out we don't.
And not taxpayers are gonna be on the hook for the legal bills -- former Fannie Mae and Freddie Mac executive so that's good news Liz MacDonald's here the following the story why why Liz why why why well because they've Fannie Mae Freddie Mac are essentially saying we've got legal contracts with these executives.
And we don't wanna go to court to battle these executives so it's -- better for taxpayers that we -- -- a lot possibly more money to cover their legal costs and here's a deal.
The Federal Housing Finance Agency -- inspector general's put -- a report.
Said the lawsuits are still racking up billions of dollars in damages against former executives of both Fannie and Freddie.
We spent taxpayers nearly -- excuse -- Fannie Freddie spent nearly a hundred million dollars on their legal fees.
More than a third 37 million came after the government -- -- so big and both have an unlimited pipeline into the treasury -- -- billion bucks spent on them so far.
But lawyers are billing at at it is fractionally at a tenth of -- about now are sick every six minutes there piling up legal fees.
And basically the housing and -- the deal is could be repudiate those contracts.
We'll get ugly indeed indeed did legislation that basically put these two into concerns -- -- ten.
But Fannie and Freddie are saying no we've got these contracts with these executives it's called -- identification.
We've got -- here to them.
But I gotta tell you something the issue is.
We don't Fannie and Freddie now we've been moving the goalposts on GM creditors and Chrysler creditors ten we repudiate these contracts to save taxpayer's buck because that's what the federal -- supposed to do minimize tech.
-- losses I actually happen harming us and what a mess but to have again pointing -- just raising and finger but one thing that we should point out is.
The and and American home by -- Benefits.
From us owning didn't owning these entities at least now don't way.
I'm not so sure about but the -- of the in crowd making the decisions.
But let me tell you about the legal thought they are the mortgage market right I know would not gonna get a mortgage as easily today is if it is that act I mean and the -- aren't gonna get -- that I -- but that's a separate debate the issue is Franklin Raines.
Was the CEO of -- on his watch -- six billion plus accounting fraud blew up.
Even a government agency said you -- viewing your -- did -- accounting fraud to boost Fannie stock price of booster on bonuses.
The three guys -- right with a 150 million Franklin got more than ninety million dollars in compensation.
And then they they've -- -- was discovered they had the company Fannie had to pay a record for a million dollar fine.
Bid to pay 31 million bucks and settlement fees.
And then the legal costs are being covered because of these lawsuits but you know insider trading cases are criminal.
Companies like India Flextronics -- repudiating that coverage for legal fees.
This is not a criminal situation it's a civil case that that's where they're drawing the fine line fare but again you know if this -- -- -- tac losses for taxpayers that's -- I was taking out your dismissal of dickens' argument in very well -- -- -- -- to go from now on map whatever just -- something different problems and could.
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