US financial system support up $700 bln in past year-watchdog
July 21st, 2010 | Published in News
Wed Jul 21, 2010 12:08am EDT
* Total US govt financial system support seen at $3.7 trln
* US support swells by $700 bln in past year-watchdog
* Mortgage, housing commitments account for most of rise
* TARP watchdog criticizes Obama housing rescue efforts
By David Lawder
WASHINGTON, July 21 (Reuters) – Increased housing commitments swelled U.S. taxpayers’ total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on Wednesday.
The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the government’s pledges to supply capital to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) and to guarantee more mortgages to the support the housing market.