Townhall - Floyd and Mary Beth Brown - Obama's Fixes Keep Financial Crisis Going

Townhall - Floyd and Mary Beth Brown - Obama's Fixes Keep Financial Crisis Going: "On July 2, President Obama declared, 'And finally, because of this law, the American people will never again be asked to foot the bill for Wall Street's mistakes. (Applause.) There will be no more tax-funded bailouts -- period. (Applause.) If a large financial institution should ever fail, this reform gives us the ability to wind it down without endangering the broader economy. '

The occasion of his bold statement was the signing of the Dodd-Frank Wall Street Reform Act.

So imagine our surprise when less than two weeks later Fannie Mae requested $1.5 billion more from the U.S. Treasury. This request came after the 12th quarterly loss by Fannie, and with this money Fannie's take from the taxpayers' wallet will grow to a whopping $86.1 billion for one company. Together with its twin Freddie Mac the bailout package is over $200 billion.

Fannie Mae, aka the Federal National Mortgage Association, was created in 1938 as a government sponsored enterprise (GSE) to bolster the housing market by increasing Americans' access to cheap home loans during the last Great Depression. Freddie Mac, aka the Federal Home Loan Mortgage Corp., was created in 1970 to end Fannie's monopoly in the secondary mortgage market. Both are mandated by Congress to help increase home ownership.