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Fannie, Freddie Could Cost You $25 Billion
Tuesday, July 22, 2008 11:00 AM
WASHINGTON -- A federal rescue of troubled mortgage giants Fannie Mae and Freddie Mac could cost taxpayers as much as $25 billion, Congress' top budget analyst said Tuesday.
But Peter R. Orszag, director of the Congressional Budget Office, predicted in a letter to lawmakers that there's a better than 50 percent chance the government will not have to step in to prop up the companies by lending them money or buying stock.
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Treasury Secretary Henry M. Paulson, who has been pressing for the power, says it's intended as a backup plan to help calm investors and stabilize financial markets.
http://moneynews.newsmax.com/streettalk/fannie_freddie_cost/2008/07/22/115114.html