The mortgage giants and government controlled Fannie Mae, Freddie Mac are to be excluded from President Obama’s next fiscal year budget plan, alone holding a whopping $6.3 in liabilities.
This is also said to be delaying the recontructuring decision for these two institutions that were seized a year and a half ago.
According to the Obama’s administration’s budget report to Congress today, Fannie and Freddie are probably looking at around $54.4 billion needed in US Treasury Dept preferred stock to remain throughout the current fiscal year, and possibly billions more to stay afloat the next fiscal year which begins this October.
Updates will continue to be provided about the decision of Fannie and Freddie, and the Obama administration is to keep close watch on the situation of the two companies.
There has been reported to be a delayed decision by the White House’s budget director Peter Orszag on whether or not these two companies $6.3 trillion debt should be included in the federal budget. He also seemed to criticize the Bush administration for not including the mortgage rescue plan of these two companies in 2008′s budget.
Because these two GSE’s are privately owned and controlled institutions the budget plan is said to list these as non-budgetary items and are not to be counted as federal liabilities.
