To many people, American International Group (AIG) is the poster child for federal bailout recipients. But the $182 billion in taxpayer money pumped into AIG will probably be overcome by the money — $145 billion and counting — used to bail out Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation), the two federally supported mortgage giants.

Financial reports from the first quarter of 2010 reveal differences between AIG and Fannie Mae — AIG is making money and Fannie is losing money, big money. AIG posted a $1.5 billion profit in the first quarter while Fannie Mae posted a loss of $13.1 billion. And Fannie's sister company, Freddie Mac, posted a quarterly loss of $6.7 billion and requested another $10.6 billion in federal bailout assistance.

News of Freddie Mac's most recent loss was reported in the New York Times in a story headlined "Ignoring the elephant in the bailout."

Reporter Gretchen Morgenson wrote, "The news (of the $6.7 billion loss) caused nary a ripple in the placid Washington scene. Perhaps that's because many lawmakers, especially those who once assured us that Fannie and Freddie would never cost taxpayers a dime, hope that their constituents don't notice the burgeoning money pit these mortgage monsters represent."

Morgenson's point about assurances that Fannie and Freddie would not cost taxpayers a dime brings to mind a 2003 comment made by U.S. Rep. Barney Frank, D-Mass., in response to Republican efforts to shift oversight of the mortgage giants to a new agency within the Treasury Department. The proposal was in response to fears that Fannie and Freddie were getting too deeply involved in risky mortgages.

But Frank opposed the reform plan and was famously quoted saying, "These two entities . . . are not facing any kind of financial crisis." And in response to calls for tightening lending standards, Frank said he was inclined to "roll the dice" some more for subsidized housing and to increase home ownership.

Warnings of continuing losses at Fannie and Freddie are reminders of the companies' conflicting roles. They are functioning as a buyer of last resort for bad mortgages sold by banks while at the same time they should be trying to minimize losses to taxpayers. One role, that of buyer of last resort, seems to be dominant — and taxpayers' exposure is a secondary concern.

The role of "buyer of last resort" has brought up suspicions of a sort of back-door bailout of some of the nation's biggest banks. Some observers believe that Fannie and Freddie are overpaying for risky mortgages sold by banks as a way to help these troubled banks get so-called toxic assets off their books.

Despite the past problems with Fannie and Freddie, there are no provisions in the current financial reform plan to make changes in the mortgage giants, which are now government owned.

Morgenson wrote, "To some, the current silence on what to do about Freddie and Fannie is deafening."

The Congressional Budget Office estimates that it will cost taxpayers $389 billion to prop up Fannie and Freddie over the next nine years — a figure more than double the AIG bailout tab.

As hearings continue on the reasons behind the financial crisis, attention should be focused on the roles that Fannie and Freddie played in the mortgage mess — as well as the role played by members of Congress, notably Frank and Sen. Chris Dodd, D-Conn., as ranking members of key congressional committees charged with oversight of Fannie and Freddie.

Promoting home ownership, which is the mission of Fannie and Freddie, can be seen as a good thing. But promoting home ownership regardless of the prospective buyer's ability to repay the loan is not a good thing — and that's a practice at the heart of the subprime mortgage crisis, which led to the larger financial crisis and subsequent recession.

Public testimony before the Financial Crisis Inquiry Commission (FCIC) should examine Fannie's and Freddie's role in helping to bring about the housing and subprime lending crises. The public should also learn more about current losses at Fannie and Freddie, and find out if the companies are overpaying for bad loans sold by major banks as a below-the-radar bailout of the banks.

Sen. John McCain, R-Ariz., says the absence of Fannie and Freddie changes in the Senate's financial reform bill is "like declaring war on terror and ignoring al-Qaida."

It's time for Fannie and Freddie to be in the same spotlight that had been aimed at AIG and Goldman Sachs. The government's role in the financial crisis must be understood by taxpayers and voters alike.