Skip to: Content
Skip to: Site Navigation
Skip to: Search

October 6, 2008 11:03:42 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Paulson's Imprimateur on Freddie/Fannie Rescue

Posted Jul 15, 08 9:16 AM CDT in Business 

(Newser) – Henry Paulson had a very busy weekend. The treasury secretary had been formulating contingency plans for bailing out beleaguered Fannie Mae and Freddie Mac for weeks, but Friday’s crisis came before those plans were in place, the Wall Street Journal reports in a reconstruction of events leading to the rescue, culminating in the frenzied weekend scramble to negotiate the particulars with the Fed and Congress.

Paulson was forced to swing into action when foreign central banks called Washington, warning that a Fannie or Freddie collapse would have global consequences, the New York Times reports. His moves appear to have staved off a crisis but, both papers note, by expanding the government’s role, Paulson has recast himself as a Clintonian financial activist—indeed, it is congressional Republicans who most oppose his plan

Sources Wall Street Journal, New York Times

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Congress Wants More Taxpayer Guarantees

    Sep 24, 08 11:04 AM CDT
    Congress Wants More Taxpayer Guarantees As opposition to the Bush administration’s economic bailout plan became more strident in both parties yesterday, officials began a major push to convince Congress a deal had to be approved quickly, the New York Times reports. The White House said the results of failing to reach an accord were “unthinkable,” but Congress remained leery, seeking more protection for taxpayers. More »

  • Bernanke, Paulson Put Fear of God Into Pols

    Sep 19, 08 4:18 PM CDT
    Bernanke, Paulson Put Fear of God Into Pols Lawmakers were astounded at the possible fallout of the crisis on Wall Street outlined last night by Fed chairman Ben Bernanke and Treasury Secretary Henry Paulson, the New York Times reports. “When you listened to him describe it you gulped,” New York Sen. Charles Schumer said of the meeting between a select group of lawmakers and the two officials.
    More »

  • Paulson Outlines His 'Bold' Bailout

    Sep 19, 08 10:10 AM CDT
    Paulson Outlines His 'Bold' Bailout Henry Paulson confirmed today that he is working on a "bold" plan to buy bad loans from banks, the Wall Street Journal reports. Such a plan would cost taxpayers “hundreds of billions of dollars,” Paulson said, but he believes it is necessary to stabilize the economy. “The ultimate taxpayer protection will be the stability this troubled asset-relief program provides to our financial system,” he said. More »

  • Credit Crisis at Tipping Point

    Sep 12, 08 9:29 AM CDT
    Credit Crisis at Tipping Point The federal government keeps taking aggressive steps to keep the markets from flying off the rails, and yet here we are again: facing another crisis and wondering how much intervention is necessary, the Wall Street Journal reports. With government intervention showing signs of strain amid entrenched economic problems, the crisis might be entering a key stage. "It's not improving even slowly," says Laurence Meyer, a former Fed governor, now vice chairman of an economic-forecasting firm.
    More »

  • Senator: Fire 'Socialist' Paulson

    Sep 9, 08 5:45 PM CDT
    Senator: Fire 'Socialist' Paulson Treasury Secretary Henry Paulson saved Fannie Mae and Freddie Mac, but now he may have to worry about saving his own job: One Republican senator called his policies socialist and recommended that he and Fed chief Ben Bernanke resign, Bloomberg reports. “They have taken the free market out of the free market,” said Jim Bunning of Kentucky.
    More »

Treasury Secretary Henry Paulson Jr., left, confers with House Financial Services Committee Chairman Rep. Barney Frank, D-Mass., on Capitol Hill in Washington, Thursday, July 10,2008.   (AP Photo/Manuel Balce Ceneta)
Henry Paulson testifies on Capitol Hill in Washington before the House Financial Services Committee hearing on systemic risk and the financial markets, in this July 10 file photo.   (AP Photo/Manuel Balce Ceneta)
Henry Paulson and Ben Bernanke, testify on Capitol Hill in Washington, Thursday, July 10, 2008, before the House Financial Services Committee hearing on systemic risk and the financial markets.   (AP Photo/Manuel Balce Ceneta)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 5)

Tags

Federal Reserve  • bailout  • Henry Paulson  • economy  • Ben Bernanke  • Fannie Mae  • Freddie Mac  • mortgage


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories