Government To Bail Out Fannie Mae, Freddie Mac


According to media reports, the Treasury is not likely to immediately inject large amounts of capital into the Fannie and Freddie, but will stand ready to bolster the firms as their losses mount.
 
Some reports said the move could place the two in government conservatorship, the equivalent of bankruptcy reorganization,
 
The takeover by statute would only be temporary, but is expected to mean fundamental changes in the management of both firms.
 
For months the US government has sought to shore up the two government-chartered, shareholder-owned firms that have a hand in some 50 percent of all mortgages in the United States.
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