Henry Cisneros, former Housing and Urban Development Secretary under President Bill Clinton, flat-outtells our viewersthe taxpayer should not-- and will not-- be on the hook for propping up Fannie Maeand Freddie Mac, the two mortgage giants with major government connections. He talked to me and our viewers at great length yesterday on Countdown to the Closing Bell about the biggest story of the day: Fannie and Freddie were both down some 20% on fears common shareholders of the stocks will be wiped out if the Treasury Dept. has to intervene to prop up the companies due to bad mortgage bets they've made. HIs appearance was quite timely considering he worked closely with (FNM) and (FRE) during his years with the Clinton Administration.
But there's another story with which he's closely linked: CountryWide Financial. Until October of 2007, he sat on their Board of Directors. Please listen to what he has to say about CountryWide's embattled founder Angelo Mozilo and about the mortgage loan he himself received from CountryWide. This is the first time Mr. Cisneros has talked at length about CountryWide since the housing bubble poppedso we appreciate his time. Here are the clips...let me know what you think.