But far from being dismantled, Fannie and Freddie have avoided insolvency, thanks to massive taxpayer bailouts. Talk of winding them down has faded on Capitol Hill and is being discouraged by the Obama administration. The two entities, along with the Federal Housing Administration, currently back some 90 percent of new mortgages. Talk about there being no consequences for failure.
At least Countrywide had to be sold to Bank of America in 2008; and two years later, Countrywide’s disgraced CEO, Angelo Mozilo, had to pay a $22.5 million fine, the largest ever at that time for a senior executive of a public company, for insider trading and concealing information on Countrywide’s deteriorating mortgages.