Taxpayers Eating Fannie and Freddie's Legal Fees: Republicans Need to End This Madness

As if the American taxpayer hasn't paid enough for the sins and misuse of Fanny Mae and Freddie Mac. They of course are the two government influenced mortgage companies that pushed this philosophy of easy loans to people who couldn't afford the house payments, which led to the housing bubble collapse and helped aid this economic downturn.

It turns out the American taxpayer are out for more costs associated with Fanny and Freddie. The two mortgage finance companies have racked up an astonishing $160 million in legal fees, fees that will be passed on to taxpayers. Fanny alone has used more than $130 million in legal services in defense of its services and officials.

Documents reviewed by The New York Times indicate that taxpayers have paid $24.2 million to law firms defending three of Fannie’s former top executives: Franklin D. Raines, its former chief executive; Timothy Howard, its former chief financial officer; and Leanne Spencer, the former controller.