A recent BLT Blog post, “Issa Asks for Details of Fannie, Freddie Legal Fees”, reports that the Chairman of the House Committee on Oversight and Government Reform wants to know why lending giants Fannie Mae and Freddie Mac are still paying the legal bills for their former executives.  Those legal fees have run well into the millions of dollars -- $24.2 million to defend the former executives and $160 million overall to defend them and the companies in various lawsuits.  Taxpayers are effectively on the hook for the legal fees, because the federal government took over the two mortgage companies in 2008.

Rep. Darrell Issa (R-Calif.), the oversight chairman, released a seven-page letter (pdf) he has sent to the federal agency that oversees the two companies.  The letter asks for a “full and complete explanation” of the decision to “continue advancing legal fees on behalf of former executives.”  The letter asks for employment contracts for the former executives and for communications involving the companies, the Treasury Department, and the White House.