« First Title and Winmarkt Sign Title Insurance Deal | Main | Regulators Seize IndyMac Bancorp »
July 18, 2008
U.S. Unveils Plan to Aid Mortgage Giants
The Bush administration has outlined a plan to help Fannie Mae and Freddie Mac weather investor concerns about capitalization and expects the measures to be passed by Congress and signed into law by the president by the end of next week. Under the plan, the government-sponsored enterprises would be able to trade certain assets for cash at the Federal Reserve's discount window in the event of an emergency. Additionally, the Treasury secretary would be given authority to boost Fannie Mae and Freddie Mac's $2.25 billion credit lines as necessary and negotiate terms under which the government would purchase their stock.
Posted by S. Germain at July 18, 2008 08:11 AM