Wednesday, February 18, 2009
Obama's Mortgage and Toxic Asset Rescues
Next on the launching pad is a $75B proposal to assist in a voluntary program by banks and borrowers to modify mortgages (summary of the terms here). Deja vu? This requires no Congressional approval; it will be coming from the TARP money. The Treasury Department will also expand support of Fannie Mae and Freddie Mac to $400B in purchase of preferred shares, up from $200B. I'm presuming this comes from the remaining TARP money. There was $320B available when Obama took office. By my math that is $45B left.