The true banking crisis ignored be media

Fannie and Freddie................

The taxpayer cost of bailing out Fannie Mae and Freddie Mac could be as high as $1 trillion. Yet Democrats still refuse to reform the toxic twins, making reform meaningless.

Already their $160 billion government rescue has surpassed the amount spent on AIG, Citigroup and other poster boys of the financial crisis, making their liability "the mother of all bailouts," as one analyst put it.

The failed Washington-based mortgage giants were more exposed to subprime and other junk home loans than any of Washington's favorite Wall Street whipping boys. And they commanded a much larger share of the mortgage market. Together they owned or guaranteed more than half the mortgages and mortgage-backed securities when they collapsed in 2008.

Thanks to their politically mandated lending goals, congressionally chartered Fannie and Freddie were at the heart of the subprime scandal. We can't think of two companies more deserving of overhaul. Only, Congress doesn't even attempt to rein them in. Fannie and Freddie are conspicuously absent from the financial reform bills House and Senate Democrats are cobbling together.

Let's face it. If Jamie Gorelick and Franklin Raines can loot a few million from the place, the democrats aren't going to touch it.

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