Texas Representative Requests Details of Taxpayer Expenses for GSEs

Rep. Randy Neugebauer (R-Texas) has sent a letter to the Federal Housing Finance Agency (FHFA) requesting Acting Director Edward DeMarco to provide full details of how taxpayer dollars are being spent to pay for lawyer's fees and legal costs for Fannie Mae and Freddie Mac.

[IMAGE]

""Among other things,"" Neugebauer said in a statement, ""I am concerned that the taxpayers are stuck picking up the tab for ongoing legal counsel for the very executives who drove the GSEs into conservatorship in the first place.""

[COLUMN_BREAK]

The letter requested a detailed report on all legal fees accrued by the GSEs or on their behalf since they were placed into conservatorship in September 2008.

According to the letter, the report should include, but not be limited to the following details:

• The total dollar amount of legal expenses for the defense of all former Fannie executives, including Frankin Raines, Timothy Howard, and Leanne Spencer, as well as the ongoing expenses for pending class action, shareholder derivative or other lawsuits for current and former Fannie executives.

• The total dollar amount of legal expenses spent on firms retained by the GSEs that are under investigation by State attorneys general for fraud related to ""robo-signing,"" including the David J. Stern law firm in Florida.

Neugebauer requested the report be submitted for his review no later than December 31, 2010 and that it include a breakdown of each law firm that has provided legal representation to the GSEs, a description of the type of service provided, and the total dollar amount for legal services rendered paid to each firm.