July 16, 2008 Patrick faces criticism for Turnpike bailout plan Play video

(Peter Howe, NECN) - The Mass Turnpike Authority runs a 138 mile highway and the tunnels under Boston. Fannie Mae and Freddie Mac control half the 12 trillion dollar US mortgage industry. But both these situations really raise the same question: When should the government make big organizations suffer for their mistakes? And when is the price of full accountability likely to be too high for taxpayers and for society?

Parents know the idea as tough love. Sometimes the best way to teach your kids is to let them suffer the consequences of their mistakes. Now in Boston and Washington, we're seeing leaders argue that principle can't apply to big, powerful organizations.

Fannie Mae, Freddie Mac, the Massachusetts Turnpike Authority. All in big trouble, thanks to leaders' risky financial decisions and the souring economy. Washington's rushing a bailout for the mortgage companies. In Massachusetts, the turnpike authority is facing bankruptcy from exotic 1990s Wall Street deals -- swaptions -- now bleeding millions.

State Treasurer Tim Cahill comments on potential Turnpike bailout

Governor Deval Patrick and house leaders want to help by having state taxpayers back turnpike bonds, if needed. State treasurer Tim Cahill says no. So does the business-backed Mass Taxpayers Foundation.

NECN's Peter Howe reports.