Fed, Treasury Offer Help to Fannie and Freddie

BusinessFed, Treasury Offer Help to Fannie and FreddieFed, Treasury Offer Help to Fannie and FreddieThe 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. ___ ___, The Associated Press.(****END****) ANCHOR VOICE: Carlotta Bradley-------------------------VIDEO PRODUCER: Bianca Davie------------------------------VIDEO SOURCE: AP/ABC for Paulson video--------------------------VIDEO APPROVAL:------------------------------VIDEO RESTRICTIONS:----------------------------------SCRIPT/WIRE SOURCE:------------------------------------

Category:

News & Politics

Tags:

• fannie
• freddie
• fed
• treasury

[oilhammer04]

Another rip-off for taxpayers.

[jburt56]

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[jburt56]

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[jburt56]

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[heres22]

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