U.S. Covers Millions in Legal Fees for Ex-Freddie, Fannie Executives

FoxNews.com
1/24/2011

Taxpayers have spent more than $160 million defending executives of Fannie Mae and Freddie Mac, infuriating lawmakers who want to know why taxpayers are footing the bill for heads of agencies that have already cost Americans at least $150 billion.

According to The New York Times, the bulk of those legal expenses — $132 million — went to pay for the defense of former top executives named in civil lawsuits accusing them of fraud and in various securities suits and government investigations into accounting irregularities that occurred years before the subprime lending crisis erupted.

Of the payments, $24 million went to defend former Fannie CEO Franklin Raines and two other executives.

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