Search Results: Freddie Mac

The U.S. Treasury is likely to have to recapitalize the two sagging government-sponsored enterprises, Fannie Mae and Freddie Mac, and may have to accomplish that goal with taxpayer money. According to a report in the August 18th edition of Barron’s, the Treasury Department and the new regulatory body, the Federal Housing Financing Agency, have told the agencies they must raise more equity. If they cannot accomplish that, the Treasury would inject taxpayer money into the agencies, according to the report. The U.S. government’s guarantee to purchase any obligations and other securities issued by Fannie and Freddie was helpful in the…

The Congressional Budget Office (CBO) has submitted a report to the House Budget Committee on the Bush Administration’s proposal to provide temporary authority to Treasury Secretary Henry Paulson (pictured) to purchase any amount of obligations and other securities issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Under current law, the Secretary has permanent authority to purchase debt securities issued by Fannie Mae and Freddie Mac up to a total of $2.25 billion from each. Reached this morning, a CBO spokesperson could not speak to whether that option has been exercised to date. The CBO report explains…

The Bush Administration unveiled plans on Sunday to aid Fannie Mae and Freddie Mac, the U.S.’s two largest mortgage finance companies, as concerns continue to mount about these government-sponsored entities. Shares of the two companies plummeted 50 percent last week on those worries. Together, Fannie Mae and Freddie Mac own or guarantee about half of the nation’s $12 trillion mortgage market. A temporary rescue plan has already been put into place, as the Federal Reserve said it would make a short-term lending program available to the two giants. A more comprehensive plan would be attached to a housing bill that…