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Bush plan to help Fannie, Freddie could cost $25 billion |
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By Mike Soraghan
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Posted: 07/22/08 11:34 AM [ET] |
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The Bush administration plan to shore up mortgage giants Fannie Mae and Freddie Mac has been estimated to cost taxpayers $25 billion over two years, the Congressional Budget Office said Tuesday. But CBO also said there is a “better than 50 percent” chance that the federal government will not have to spend any money at all. The theory is that by offering the rescue package, the markets would be reassured and the companies would be able to raise money on their own. The release of the “CBO score” comes a day before the scheduled vote on the housing bill that includes the administration’s rescue package. Aides, though, have said that the vote could be delayed past Wednesday. White House officials have threatened that President Bush might veto the bill because it includes $4 billion for local governments to buy foreclosed properties. |
