Bailouts

Subprime Lenders Subsidized

The very subprime lenders whose products were the root of the housing crisis are now eligible for billions in public funds, according to The Washington Post. The nonprofit investigative reporting group Center for Public Integrity has released a report that shows that the government's foreclosure-prevention program may benefit subprime companies such as J.P. Morgan Chase, Wells Fargo, and Countrywide (now part of Bank of America). The $75 billion program, called Making Home Affordable, offers taxpayer subsidies to lenders who ease mortgage burdens on troubled homeowners. So far, it's not working. Less than 10 percent of eligible mortgage holders have gotten help, despite the intense pressure on lenders from Congress and the White House.