Update: A week after Freddie announces their loss of $8 billion sister Fannie Mae comes out with a 1st quarter loss of more than $13 billion! These two companies that Barney Frank swore were financially sound have burned through another $21 billion of your money in just 3 months folks!
Its operations having lost another $8 billion in the first quarter of 2010, Freddie Mac is back at the TARP trough for more of our tax dollars. This time the tab will be $10.6 billion, but they’re bound to lose money in Q2 and for the foreseeable future, so expect them to come begging for even more very soon.
Overall this will put the federal government’s total bailout of Freddie Mac at $60 billion. Tack on another $76 billion to date for Fannie Mae’s bailout, and that’s $136 billion and counting to rescue these two organizations. Barney Frank (D-MA) must be absolutely stunned because here he is in 2003, when the Bush Administration was asking for stronger regulations, saying Fannie and Freddie would never fail, and if they did, THE GOVERNMENT WOULD NEVER BAIL THEM OUT!
Wrong again Barney!