THIS The Treasury Department stepped in to keep the companies from collapsing and taking the mortgage industry with them.so actually little chance of that) Then I realize it is coming from INSIDE my house. I checked my alarm clock.see all those non-dog ppl would've had a flooded basement!.When the government took over, Fannie Mae chief executive Daniel H.Neither Fannie nor Freddie has said whether they already have advanced any legal fees to former executives. I pleaded with her a moment to come back to bed. I turn on the basement light to see POURING water.S.I know its long - this article makes me pizzed - I'd rather the $$$ went to a good cause (ie battered women's shelters, etc) Taxpayers may pay legal bills for mortgage execs AP ?WASHINGTON ?When the government took over mortgage giants Fannie Mae and Freddie Mac, taxpayers inherited more than just bad debts. I really didn't want to leave the warm bed. Those who are acquitted, who are merely witnesses or who are investigated but never charged do not need to reimburse the company.I have a 7 month old female Boxer that I can not get to stop peeing in her crate! She does not ever bark or wine - I shouldn't say never, but it is a very rare squirl that gets her going. All those executives would be entitled to have their legal fees covered.FINE. If the shareholders win ?if they can prove the companies were mismanaged ?the government could be liable for millions of dollars to make up for the executives' failures. mortgage industry.Both Fannie Mae and Freddie Mac have been subpoenaed as part of the wide-ranging Justice Department investigation into the companies' accounting, disclosure and governance practices. Syron and the rest of the companies' leadership was dismissed. Both companies have promised to pay legal fees for all current and former board members, executives and employees charged or investigated in connection with their employment. When the housing bubble burst and the subprime industry imploded, investors feared the risk of buying Fannie and Freddie's mortgage-backed securities, making it harder for the companies to raise money. By the middle of 2005, the company had paid $16. We put a bell on the door to go out and she would ring that. She went into the vet yesterday for surgery (pulling a tooth) and a cleaning.she saved the day!!!! I'm such a proud dog mom!Had to share.-based group that has been critical of the financial bailout packages.S. The agency could prohibit some fees, but a broad prohibition almost certainly would lead to a costly court fight over who's responsible for the bills when the Justice Department comes knocking. The Fannie and Freddie contracts give the executives the right to sue to force the companies to pay their legal fees.blah. Anything will help!!![img]Ok, my JRT is a good dog for a JRT, but honestly is VERY strong willed. After banks make loans to home buyers, Fannie and Freddie buy the mortgages from the banks so bankers can have cash on hand to make more loans and keep the economy humming.It wouldn't be the first time federal money intended to prop up the financial industry was used for unintended purposes." I made it to the main level to hear POURING water. Days after it received an $85 billion federal bailout loan, the huge insurer American International Group Inc. The companies are required to make general disclosures about such payments but only on quarterly corporate filings. In taking over the two mortgage giants, the government pledged to spend up to $200 billion to keep both companies afloat. The amount the government actually will spend depends on how well the companies perform in a changing mortgage industry. So she was a tad out of it still last night. Also tried the bell in the kennel, but she rang that all night to go out - well not really to go out - to get up! She does have a pet bed thing in her crate because Daddy thinks it needs to be there. She ended up having 3 pulled.Our pressure tank is leaking!!! I can't get the shut off vales to work! OIY! The water had shorted it out, so we finally flipped the breaker and began clean up. Fannie and Freddie then bundle those loans and sell them as mortgage-backed securities. My thoughts were along the lines of, "great. Like many large companies, Fannie and Freddie had contracts promising to cover legal bills for their executives. In my sleep stupor I'm thinking it must really be raining.Fannie's and Freddie's contracts also cover legal fees from shareholder lawsuits. Duckie ran directly to my basement.With the Justice Department investigating companies involved in the mortgage and financial meltdown, executives around the country are hiring defense lawyers.With so much money at stake, defense attorneys are watching closely to see how broadly housing regulators restrict any future legal payments. Taxpayers could be forced to pay those legal bills, too. Mudd, Freddie Mac chief executive Richard F.Combined, Fannie and Freddie own or guarantee nearly half of all U. (It was 6 degrees F here this am.Executives who are convicted of wrongdoing are required to give the money back."Who'd have thought we might be on the hook for paying the defense costs when we're also paying the prosecution costs?" said Doug Heller, executive director of Consumer Watchdog, a Santa Monica, Calif.In recent years, however, the companies purchased more risky, subprime mortgages. The two companies are key to the U.8 million in legal fees for its executives and employees.I just couldn't believe it.where's the nutcase dog going now.2:30am.Last night she pop'ed down off the bed and barked once at the bedroom door. After Freddie Mac restated its earnings in 2003, it became embroiled in several investigations and lawsuits. If the executives win, the cost of those lawsuits gets passed to Fannie and Freddie, and potentially to the taxpayers. Run upstairs to awake the husband and grab my glasses.Legal fees can add up quickly. "To defend the economy from the havoc that's been created, we're going to defend the havoc creators?"The Bush administration is working to avoid it. The proceeds of those sales help buy more mortgages. spent $440,000 on an executive retreat with spa treatments, banquets and golf outings. mortgages. The Federal Housing Finance Agency, which controls Fannie and Freddie, said in regulatory filings that it soon will issue regulations spelling out exactly how such legal fees may be dolled out.When the Treasury Department delivered a $200 billion bailout to Fannie and Freddie, that obligation passed to the government, which may find itself paying for the lawyers defending the executives against the government's own prosecutors.It's impossible to determine how much money might be at stake.The obligations could easily stretch into millions of dollars. They're also potentially on the hook for tens of millions of dollars in legal fees for the executives at the center of the housing market's collapse
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