Treasury to increase credit line to Fannie, Freddie Fed to extend discount window to Fannie, Freddie Paulson says Fannie Freddie must be saved Treasury gets authority to by Fannie, Freddie stock Paulson says Fannie Freddie must be saved Fed to extend discount window to Fannie, Freddie Treasury to increase credit line to Fannie, Freddie
Paulson Statement on Freddie Mac, Fannie Mae: Full Text July 13 (Bloomberg) -- Following is the text of a statement issued today by Treasury Secretary Henry Paulson: Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies. Their support for the housing market is particularly important as we work through the current housing correction. GSE debt is held by financial institutions around the world. Its continued strength is important to maintaining confidence and stability in our financial system and our financial markets. Therefore we must take steps to address the current situation as we move to a stronger regulatory structure. In recent days, I have consulted with the Federal Reserve, OFHEO, the SEC, Congressional leaders of both parties and with the two companies to develop a three-part plan for immediate action. The President has asked me to work with Congress to act on this plan immediately. First, as a liquidity backstop, the plan includes a temporary increase in the line of credit the GSEs have with Treasury. Treasury would determine the terms and conditions for accessing the line of credit and the amount to be drawn. Second, to ensure the GSEs have access to sufficient capital to continue to serve their mission, the plan includes temporary authority for Treasury to purchase equity in either of the two GSEs if needed. Use of either the line of credit or the equity investment would carry terms and conditions necessary to protect the taxpayer. Third, to protect the financial system from systemic risk going forward, the plan strengthens the GSE regulatory reform legislation currently moving through Congress by giving the Federal Reserve a consultative role in the new GSE regulator's process for setting capital requirements and other prudential standards. I look forward to working closely with the Congressional leaders to enact this legislation as soon as possible, as one complete package. Last Updated: July 13, 2008 18:00 EDT http://www.bloomberg.com/apps/news?pid=20601087&sid=aNHPA3k7pAAQ&refer=home
who is gonna to bail out a bankrupt US government? they will need to implement another stimulus package before winter comes to rescue many times rescued homeowners from freezing to death then another one to buy them some food then another one...
Absolutely amazing. Asleep at the switch for years. Now, all of the sudden, these cocksuckers are workin' on Sunday spending Billions of the taxpayers money. And he'll get what he wants from Congress. Because it's their ass too. No wonder the Govt is discussing Martial Law. This is as messed up as I think I've ever seen. Well, Vietnam was worse: people physically died, vs. this slow fucking bleed out we're in now.
Does this just mean all time lows for the USD and higher Oil prices? Stocks down on oil and inflation, if not monday, at a latter date ! The fact the Govt will buy stock in Mortgage coy with further write down expected in the months to come, is just give stock holders a chance to get out at a little higher price. Printing money is printing money. The futures is only up 13 handles as I write this, if this was boom bullish, they would be up 30 handles ! Ok lets see what happens. Also interest rates are up big on the 30yr. House hold mortgages will love that.