WASHINGTON (AP) -- A federal rescue of Fannie Mae and Freddie Mac could cost taxpayers $25 billion, congressional budget experts said Tuesday, as lawmakers put finishing touches on legislation that would tap the troubled mortgage giants' profits to help save homeowners from foreclosure.
A costly rescue is just a worry, not a fact at this point. Peter R. Orszag, director of the Congressional Budget Office, predicted in a letter to lawmakers that there's a better than even chance the government will not have to step in to prop up the companies by lending them money or buying stock.
But Congress is expected to vote as early as Wednesday on a housing measure that would give the Treasury Department authority to throw Fannie and Freddie a temporary lifeline.
A costly rescue is just a worry, not a fact at this point. Peter R. Orszag, director of the Congressional Budget Office, predicted in a letter to lawmakers that there's a better than even chance the government will not have to step in to prop up the companies by lending them money or buying stock.
But Congress is expected to vote as early as Wednesday on a housing measure that would give the Treasury Department authority to throw Fannie and Freddie a temporary lifeline.
topics:
Business,
Bailout,
Credit Crunch,
Mortgage Crisis,
Subprime Mortgages,
Grassroots
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