Added: Sep 6, 2008

From: AssociatedPress

Duration: 1:31

PlusFed, Treasury to Help Fannie Mae and Freddie MacFed, Treasury to Help Fannie Mae and Freddie MacThe Associated PressThe Federal Reserve and the 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. (July 13)[Notes:ANCHOR VOICE] The Federal Reserve and Treasury are extending a couple of life lines to Fannie Mae and Freddie Mac.Shares of the mortgage companies have plunged recently and their losses have threatened their financial survival.Treasury Secretary Henry Paulson says he plans to ask Congress to increase Fannie and Freddie's credit limits and, if necessary, make equity investments in the companies.((PAULSON SOT))Secretary Paulson says he's also looking to consult the Fed about any new rules Congress proposes for the lenders.The Fed's role would be to weigh in on setting capital requirements for the companies. In a separate plan...the Fed says it's given the Federal Reserve Bank of New York the green light to lend to the 2 mortgage companies if they need it. The mortgage financiers would pay 2 point 25 percent for any borrowed funds. That's the same interest rate given to commercial banks and Wall Street firms.Ben Bernanke and company say that move should help Fannie Mae and Freddie Mac quote- promote the availability of home mortgage credit during a period of stress in financial markets.The Treasury and Fed plans are also meant to let nervous investors around the world know the U-S government is willing to do everything it can to prevent further problems in the credit markets.

Channel: News

Tags: fannie  fanniefreddie  fed  freddie  mac  mae  treasury 

Rating: 5.00 (3 ratings)    Views: 1848' favoriteCount='4    Comments: 30

JigglesJingle Says:

Sep 6, 2008 - Don't worry people!!! We won't be in any recession! The Tax payers will bail everything out, it'll all be fine.

essayant2 Says:

Sep 6, 2008 - Interesting that the US gov will bail out any failed corp and leave the citizens to foot the bill. This is the worst kind of socialism. In other socialist countries, the government takes money from corporations to give to the poor. Here, we take money from the poor to bail out failed corporations.

mycatisromeo Says:

Sep 6, 2008 - What are the chances of the U.S. economy collapsing if these two giants go bankrupt? This "lifeline" is only delaying the inevitable for a few months. Its pretty serious - I'd be shocked if this is not on the nightly news tonight.

PfunkGW Says:

Sep 6, 2008 - Fannie and Freddie hey it's all good! Lets just let the taxpayers foot the bill!Uh oh spahgettio here comes even more inflation.

youtuby0305 Says:

Sep 6, 2008 - What can we say ... the so-called 'Super Power' days are numbered. The circus just started, pls be patient .... still lot to come.

bird2doggy Says:

Sep 6, 2008 - Fannie you whore!!!!! Freddie you pimp!!!!

TELEVISIONARCHIVES Says:

Sep 6, 2008 - Federal Reserve have agreed to bailout private stockholders with taxpayer money. This is unacceptable.

Stan1208 Says:

Sep 6, 2008 - Whoever has shorted Freddie better cover the short and buy it back. It will go up!!!!

rangeyer Says:

Sep 6, 2008 - This whole country is absurd and ridiculous. We are headed for complete disaster in the not too distant future. It will be much worse than any of us can imagine in our worst dreams. I'm not an optimist nor am I a pessimist....I'm a realist.

Stan1208 Says:

Sep 6, 2008 - Did you know that the exact quote you just said is exactly what was said by the Chicago Tribune during the Civil War? I think you copied it.

rangeyer Says:

Sep 6, 2008 - is that really true? I swear I didn't copy it. I just thought of it last night....

gearzone2611 Says:

Sep 6, 2008 - If I was them. I will file bankrupcy and moved my company to a better another country!

jizzmonger Says:

Sep 6, 2008 - "Housing Correction"What an asshole

mancomendoza Says:

Sep 6, 2008 - bankers need help from the state?Since when in a Free MArket economy? Its the United Circus of America? do they need public funds to solve all the mess they did? will all those 6 figures execs sell their yatchies and go to jail? Why dont they go to Cuba or some communist country to get help from public funds? bankers make money with no effort, they deserve the worst.

Tabberwacky Says:

Sep 6, 2008 - the Fed should bailout all the homeowners scammed by the sub-prime loan fiasco, not the banks that funded them!

DMFist Says:

Sep 6, 2008 - "BLANK PAYCHECK" lmao !!! Free Markets ?? Where ?!?!?Seriously what the hell happened to this country ?

tmh2939 Says:

Sep 6, 2008 - I have read that there were Bush officials who urged for drastic reforms of Fannie/Freddie many months ago, but Paulson objected because he thought it would "look too political", not to mention the fact that he has close ties to Democrat dominated Fannie Mae. Also, Paulson replied "I'm not looking for scapegoats" when asked if the well-paid officials and directors of the Fannie/Freddie should be held accountable by Sen Chuck Hagel.

tmh2939 Says:

Sep 6, 2008 - I don't know much about finance but where was the govt. oversight in all of this mess? Who pushed this idea that anyone who WANTS a home, whether they can afford it or not, should be able to buy one in the first place? Don't the borrowers who couldn't afford the homes that they were buying have a part in this whole mess too?

jjrglobal Says:

Sep 6, 2008 - There is blame to go around everywhere. 1st the Fed for keeping rates too low too long. 2nd bond rating agencies that rated these mortgage backed securities 3rd mortgage companies that made the bad loans intentionally knowing they would sell them as soon as they finished writing them, in it for fees only. 4th the real blame lies with the investors that bought these securities without do diligence, relying solely on Moody's rating of AAA. And also the borrowers should have done their homework

jjrglobal Says:

Sep 6, 2008 - IS that what the ECB is reporting as inflation? Is there actually a central bank that reports factual data instead of the horse shit made up data our Federal Reserve puts out. Inflation will rise because of all these bailouts, we even risk hyper inflation considering the amount of liquidity already poured in and no bottom in sight. We also risk losing our gift of the worlds reserve currency if the dollar continues to slide and it will.

jjrglobal Says:

Sep 6, 2008 - YEP, but don't hang on to it too long. Like all gov't agencies, piss poor management.

DMFist Says:

Sep 6, 2008 - yeah Moodys response was something in the range of "we had a computer glitch that made all these loans AAA rated " lmao

jjrglobal Says:

Sep 6, 2008 - What's fucked up is no one questioned Moody's bullshit. First why would moody's rely on a computer program to determine whether or not a mortgage should rated as junk or AAA? Is no one there intelligent enough to understand that a no doc loan or "lie loan" has a greater foreclosure rate? Why would anyone get an ARM or interest only loan when rates where at an all time low? Either their credit sucked or an interest payment was all they could afford.

jjrglobal Says:

Sep 6, 2008 - There should have been reforms years ago not months. But it's really all irrelevant since there should not even be a government mortgage company. When has gov't ever run anything right?

mbmart2005 Says:

Sep 6, 2008 - Who helps the average American when is in a foreclosure nobody right.So why on earth politicians want to take up to 25 billions of taxpayers money to help this Corporate idiots? And yes is like the fellow below mention "Socialism for the rich" why should we distribute Taxpayers money to the rich when they don't care about the poor or the working class.Go and file bankruptcy for all I care.Either way banks layoff people in bad and good times when they make restructuring or send the jobs overseas.