AAP

US mortgage giants costs could hit $25b

Wednesday July 23, 02:18 AM

Congress' top budget analyst says a federal rescue of troubled mortgage giants Fannie Mae and Freddie Mac could cost US taxpayers as much as $US25 billion ($A25.6 billion).

But Peter R. Orszag, director of the Congressional Budget Office, predicted in a letter to lawmakers that there's a better than 50 per cent chance the government will not have to step in to prop up the companies by lending them money or buying stock.

Congress is expected to vote this week on a housing measure that includes Treasury Department authority to throw Fannie and Freddie a temporary lifeline.

Treasury Secretary Henry M. Paulson, who has been pressing for the power, says the backup plan will help calm investors and stabilise financial markets.

Next Article: Hope of rate relief for borrowers
Previous article: Rising rates worrying borrowers: survey

Top Headlines

Finance company rating agency closes
Thursday August 7, 03:39 PM - NZPA

The demise of many finance companies in the past two years has led to the demise of a company that rates them. Read More...

Tower ends relationship with ANZ National
Thursday August 7, 03:17 PM - NZPA

From March next year Tower branded general insurance will no longer be sold through ANZ National banks because the insurer said it has been making an underwriting loss on the business. Read More...