Taxpayers Still on the Hook……

Taxpayers could possibly be responsible for the millions upon millions of dollars in legal fees that the executives of Fannie Mae and Freddie Mac may incur because the mortgage giants had contractual agreements with them to cover their legal expenses. After the government bailout, this legal bill was passed to the government, thus, potentially leading to the taxpayers footing the bill.

Doug Heller, the executive director of Consumer Watchdog put it best when he said, “Who'd have thought we might be on the hook for paying the defense costs when we're also paying the prosecution costs?” The government is trying to avoid this from happening; however, this could lead to more pricey legal battles over who has to pay the bill.

To make matters even worse, the companies also have agreements to cover legal costs from shareholder lawsuits, which taxpayers could potentially have to pay for as well.

This article angered me a lot. Why are we, the taxpayers, who are being laid-off and losing our entire life savings still being forced to support the actions of greedy executives? First we bail them out, then we pay their legal fees, and if they get acquitted, who knows what else we will be paying for? Where is our bailout…

http://www.insurancejournal.com/news/national/2008/11/07/95360.htm