Freddie Mac last month said it would stop making risky bets against homeowners after concerns were raised by its regulator, the Federal Housing Finance Agency. The statement by the FHFA was issued in response to an investigation by NPR and ProPublica that disclosed how Freddie Mac bought billions of dollars in securities that turned a profit if homeowners remained stuck in high rate mortgages. The White House said the Treasury Department is looking into Freddie Mac's investments. Steve Inskeep talks with NPR's Chris Arnold and Jesse Eisinger of ProPublica about their report.
Freddie Mac is a gatekeeper in the mortgage market. In many cases, the taxpayer-owned mortgage company controls who qualifies to refinance a mortgage and who doesn't. Well, NPR has learned that Freddie Mac has been making financial wagers, betting against American homeowners being able to refinance. And now some lawmakers want to put a stop to it. NPR's Chris Arnold has been reporting this story in partnership with ProPublica.org. He has this report.
One of the biggest antitrust investigations in the nation's history has led to fines of $470 million against one Japanese auto parts manufacturer and $78 million against another, the U.S. Justice Department announced today.