The Guardian reports that American regulators have been told that housing giants Fannie Mae and Freddie Mac — both of which should have been privatized long ago — may need a $363 billion taxpayer-funded bailout.

US regulators have warned that taxpayers may end up absorbing losses of $363bn (£231bn) from bad mortgage loans – the latest sign that problematic lending practices that triggered the 2008 banking crisis continue to buffet the US.

The issue, which has flared anew this month with a ban on the resale of foreclosed homes after flaws in the legal processes were exposed, has led investors to voice fears of second housing-related crisis…

The Federal Housing Finance Agency has now warned that the government-guaranteed funds Fannie Mae and Freddie Mac, which have already absorbed $148bn in bail-outs, may now need up to $363bn under worst-case predictions.

Wait for Democrats to pin this on Republicans. They’ll conveniently leave out Republican attempts to clamp down on Fannie and Freddie earlier this decade — attempts that were opposed by Congressional Democrats, including Barack Obama and Barney Frank.