Mortgage Executives legal bills paid by taxpayers

When Freddie Mac and Fannie Mae were taken over by the US government not only did the taxpayer inherit bad debt, they could possibly be in-line to pay tens of thousands of dollars in legal fees, these legal fees are for the mortgage executives who are at the centre of the housing market collapse.

As the Justice department investigates the firms that were involved in the financial and mortgage meltdown, defense lawyers are being hired around the country for the mortgage executives, Freddie Mac and Fannie Mac had contracts that guaranteed to cover legal bills for the executives.

As the government bailed out Fannie and Freddie with $200 billion dollars of taxpayers’ money the obligation has now been passed onto the government, resulting in the government possibly having to pay for its own prosecutors and also the lawyers of the defense.

Source: Ap.Google