Obama provides unlimited loss coverage to Fannie Mae and Freddie Mac

I'd be very surprised if this was even legal...

A Christmas Eve White House decision that nobody will notice. President Obama and his treasury secretary, Timothy Geithner, have elected to increase loss coverage for the Government Sponsored Enterprises (GSE) of Fannie Mae and Freddie Mac from $200 billion to unlimited for the next three years.

So much for transparency, but there is more! The GSEs are having a pretty good week as politicians and lobbyists are provided cover with snow storms in the nation’s capital, a huge health care debate and only the biggest holiday of the year. For those of you who may have missed it, the Associated Press reported top executives at the GSE would be paid as much as $6 million for their terrible performance in 2009.

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