Rescue Sought For Fannie and Freddie Mac

[anneyland]

WASHINGTON — Alarmed about the sharply eroding confidence in the nation’s two largest mortgage finance companies, the Bush administration will ask Congress to approve a rescue package that would give the government the authority to buy billions of dollars in stock in Fannie Mae and Freddie Mac and also lend to the companies to meet their short-term funding needs, people briefed about the plan said on Sunday.


http://www.nytimes.com/2008/07/14/washington/14fannieweb.html?_r=1&hp&oref=slogin

[heybales219]

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.


The announcement marked the latest move by the government to bolster confidence in the mortgage companies. A critical test of confidence will come Monday morning, when Freddie Mac is slated to auction a combined $3 billion in three- and six-month securities.

http://apnews.myway.com/article/20080713/D91T86E80.html

[NewWorldOrder]

So does this mean they are going to print more money just Freddie and Fannie? :heh

[sophie]

Oh I just LOVE the 2.25% rate:tapfoot, as we're paying 6.75% for our refinance:frust

[jmsmar07]

Oh I just LOVE the 2.25% rate, as we're paying 6.75% for our refinance


Yeah why do us little people get (the ones who are living paycheck to paycheck) socked with the higher percentage rate:idunno this is such a backwards world!!!:tsk