Forcing Frannie to write down principal on troubled mortgages they own is just another bank...

|By:, SA News Editor

Forcing Frannie to write down principal on troubled mortgages they own is just another bank bailout, writes Gretchen Morgenson. Many of these mortgages have 2nd liens held by banks. Lowered principal on the first note all of a sudden gives value to essentially worthless 2nd lien paper, and all at the expense of taxpayers.