Financial Roundup: Fannie Mae, AIG Claim Feds Too Strict, Bailout Effects Will Take Months, Citi Eases on Homeowners, Banks Gave Big Political Money

Fannie Mae, AIG complain about federal bailout — Two sagging financial giants, AIG and Fannie Mae, say that conditions and interest rates for their initial bailouts were too strict. The feds have redone AIG’s bailout with easier terms and Fannie Mae wants the same treatment. [Source: The Washington Post]

Bailout effects not due for months — The Treasury Department’s $700 billion bailout benefits won’t be evident for months. Bailout chief Neel Kashkari told a New York conference that it will take several months for Treasury to finish buying equity and for confidence in banks to be restored. [Source: CFO.com]

Citigroup to ease mortgage conditions — Citigroup is imposing a moratorium on foreclosures to help homeowners stay in their homes. The bank announced it will help renegotiate troubled mortgages and reach out to 500,000 homeowners who may eventually need help. [Source: Associated Press]

Banks gave millions in political contributions — Despite the financial crisis, big banks paid millions in political contributions this election year.  Troubled Wachovia, which will be taken over by Wells Fargo, gave $1.2 million through political action committees while Bank of American gave $3.7 million. [Source: The Charlotte Observer]

AmEx becomes bank — Credit card lender American Express has become a bank holding firm so it can participate in the federal financial bailout. [Source: The Wall Street Journal]