U.S. plan for GSEs has $25 billion price tag: CBO

Analysis says chances of not being used greater than 50% By Robert Schroeder, MarketWatch WASHINGTON (MarketWatch) -- A proposed plan by the Bush administration to backstop struggling mortgage-finance companies Fannie Mae and Freddie Mac will cost $25 billion over fiscal years 2009 and 2010, the Congressional Budget Office estimated Tuesday. However, the CBO's analysis said, there's a chance of better than 50% that the Treasury wouldn't need to use its sought-after authority before it expired in December 2009. Treasury Secretary Henry Paulson is seeking congressional approval this week for the plan, which would extend an unlimited line of credit to Fannie for 18 months, a proposal that has made some lawmakers nervous. The U.S. plan would also give the Treasury the authority to buy Fannie and Freddie stock if Treasury thinks... [read full story]