But recently filed SEC lawsuits against Fannie and Freddie for massive fraud contradict that finding.
They offer a mountain of evidence that the government-sponsored mortgage giants played a leading role in the crisis.
Instead of $600 billion in subprime and other risky mortgages, Fannie and Freddie held or guaranteed $1.6 trillion. That means they failed to disclose a whopping $1 trillion in risk to investors.
The new total is close to the $1.8 trillion estimated by former Fannie chief credit officer Ed Pinto and cited on these pages the past couple of years. The SEC complaints completely discredit the findings of the FCIC, which rejected Pinto’s data and validated the phony numbers.