WASHINGTON (AP) — A watchdog says the U.S. government regulator for Fannie Mae and Freddie Mac must do a better job limiting legal expenses paid by the two mortgage giants to their former executives facing lawsuits.
A report issued by the inspector general for the Federal Housing Finance Agency says Fannie and Freddie together have paid more than $109 million in legal expenses for former executives since 2004.
Taxpayers are footing the bill: The bailouts of the two companies have so far cost about $150 billion and that figure continues to grow.
The report says the agency should develop standard legal billing practices for Fannie and Freddie, expand its oversight and take other steps.
The agency says that it agrees with the inspector general’s recommendations to continue its efforts to control costs
