Taxpayer-Funded Freddie Mac Caught Betting Billions Against Struggling American Homeowners
As homeowners across the nation struggle to keep up with mortgage payments ? and in the worse cases face foreclosure ? a new investigation reveals that taxpayer-owned mortgage giant, Freddie Mac, made multi-billion-dollar investments that profited if borrowers stayed stuck in high-interest mortgages. Freddie Mac began increasing these investments dramatically in late 2010, at the same time it was making it harder for homeowners to get out of such mortgages. Several U.S. lawmakers and prominent economists are now calling for Congress and the White House to end this financial conflict of interest. This comes just one week after President Obama promised "no more red tape" for homeowners looking to refinance. We speak with Jesse Eisinger, a Pulitzer Prize-winning senior reporter at ProPublica, who co-authored the investigative report with NPR news.
Uploaded by democracynow on Jan 31, 2012