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Fannie, Freddie execs' legal bills costing taxpayers

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    Inside housing mortgage giants' tab

  • Duration 2:03
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What you could perceive as adding insult to injury -- you -- continued expense chief Washington correspondent James Rosen has our story.

For Franklin Raines former CEO of embattled mortgage giant Fannie Mae testifying under oath has gotten to be a more common occurrence than he would wish along with felonies former CF OJ Timothy Howard and a third -- -- now faces a securities trial in Washington.

In which the three are accused of using accounting fraud to inflate Fannie stock price and their -- bonuses the three have denied wrongdoing but in this and other lawsuits probes and administrative actions they have run up an eight year legal -- 99 point four million dollars all of it picked up by the US taxpayer so concludes a new report by the inspector general of the Federal Housing Finance Agency.

Which study dean identification a former housing agency executives.

It's pretty common I mean this is not an exceptional.

Deal that was made for a few people at Freddie Mac and Fannie Mae.

It's probably in 95%.

Of the contracts a publicly held companies FHFA inspector general Steve clinic explained that due to contractual obligations quote FHFA and Fannie -- believe that their options are limited in paying current legal fees for former officers and directors polite -- nonetheless believes -- continued.

That FHFA must continue its efforts to both control and scrutinize these legal expenses.

But if organizations like Fannie and Freddie wanna attract top level executive talent curtailing their access to top level legal talent.

Will likely prove difficult when you have a deposition the F to have three lawyers and -- Wolf it's taxpayers' money you probably say yeah we need three maybe four there's really no accountability for keeping legal costs within a proper reference point.

By July the inspector general will receive a report from the FHFA on the steps the agency is taking to rein in these legal bills.

In Washington James Rosen Fox News.

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