Keep in mind when you read this that TARP made money and was a huge success!

The federal bailout for Fannie Mae and Freddie Mac could more than double in size during the next three years, according to projections from the companies’ federal regulator.

Fannie and Freddie, the federally-controlled mortgage finance giants, will likely need at least another $73 billion and perhaps as much $215 billion from taxpayers in the next three years to meet their financial obligations, the Federal Housing Finance Agency said.

Quick question: Where are the Fannie and Freddie losses coming from? Answer: bad loans they bought. Quick question: Where did the bad loans come from? Answer: the banks.

I love this line in the piece: “The projections of additional bailouts for Fannie and Freddie are in sharp contrast to recent discussions by the Obama administration about how the bank rescue known as the Troubled Assets Relief Program, originally valued a $700 billion, is expected to cost taxpayers less than a tenth of that.” Yeah, there’s a reason for that “contrast.” It’s because the losses of TARP are being realized in Fannie and Freddie.

Never mind the fact that TARP offered no strings for bailing out the banks, no prosecutions of fraud, no firing of top managers, no forcing to lend to small businesses, no mandating of cramdown or mass loan modifications, etc., etc., etc. TARP, if you look at it fully, didn’t make money, either. Far from it.

By the way, this could be a major reason why Fannie and Freddie’s oversight chair at the FHFA, Ed DeMarco, is lawyering up for the banks to take back the loans with faulty underwriting standards or other deficiencies. It cuts the losses to the programs, which is his mission.