Bail Out Time for Fannie and Freddy

[a1bion]

There've been rumblings about this for awhile and it comes on the heels of the government taking over Indymac back in California:

WASHINGTON - The Federal Reserve and the U.S. Treasury announced steps Sunday to shore up mortgage giants Fannie Mae and Freddie Mac, whose shares have plunged as losses from their mortgage holdings threatened their financial survival.

The Federal Reserve said it granted the Federal Reserve Bank of New York authority to lend to the two companies "should such lending prove necessary." If the companies did borrow directly from the Fed, they would pay 2.25 percent — the same rate given to commercial banks and Big Wall Street firms.

Secretary Henry Paulson said the Treasury is seeking authority to expand its current line of credit to the two companies should they need to tap it and to make an equity investment in the companies — if needed. Such moves will require congressional approval.

http://news.yahoo.com/s/ap/mortgage_gia ... dPi3is0NUE

[MinGator]

much like a lot of the problems in this country it has to be someone else's fault. so the feds should bail us out. pfft.

[texgator]

I heard someone make a suggestion to cut these two up into 10-12 smaller companies and make them compete in the private sector.