Crap For Sale, Dear

Bloomberg gets a hold of leaked bank documents and they reveal just what Barry was saying awhile ago: The banks are selling their crap to Freddie and Fannie.

Jonathan Weil does a better summation, though:

The gist of the article by Bob Ivry and Bradley Keoun: Citigroup, the too-big-to-fail bank that got a $45 billion government rescue, was still selling defective mortgages to Freddie Mac at an alarmingly high rate as recently as last year. And taxpayers, who now own Freddie, are on the hook as a result. The details are in an Oct. 25, 2010, internal Freddie Mac memo summarizing the findings of a yearlong quality-control review that ended last September.

...and he helpfully supplies some venom:

So who benefits from this leak? Some of the bosses at the two companies and their government minders must be embarrassed, which can only be good for the rest of us. To the extent that Freddie and Fannie have become a grabfest for the banking industry, that’s something Congress should know when it eventually gets around to rewriting the laws that govern them. Most importantly, though, the public needs to be told when it’s getting ripped off, especially when the government knows it and has no intention of telling us.

More leaks like this one, please.

Hear hear!