Mortgage giants Fannie Mae and Freddie Mac are blamed to greater or lesser degrees — depending on the political ideology of the finger-pointer — for their roles in the 2008 financial meltdown.
But even before the bursting of the mortgage bubble, critics complained the mortgage companies were risky. As government-sponsored entities, or GSEs, the argument went, they operated with an implied guarantee that federal taxpayers would rescue investors if the companies got in trouble.