Fannie & Freddie Advanced $100 Million For Former Executive Lawsuits

According to a released report from the inspector general of the Federal Housing Administration, Fannie Mae and Freddie Mac have spent $100 million in legal bills defending former executives since 2004. The directors and officers of Fannie and Freddie had these payments coming to them as part of their benefit packages however it could be viewed in bad taste to countless taxpayers who have paid over $130 billion due to the housing crisis.

The main case that was evident in this report was that of three senior executives of Fannie Mae who reportedly falsely inflated the publically traded stock price of Fannie Mae and were advanced $99.4 million from Fannie Mae to cover their court representation.

The FHFA's inspector general, Steve Linick, has said that he wants to try and limit and keep control of the legal expenses allowable so this vast amount does not continue or repeat itself in the future.