Feds Outline Fannie, Freddie Bailout

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  Nov 11, 08 10:37 AM CST
  Fannie Mae and Freddie Mac will roll out a plan today to modify hundreds of thousands of loans in an effort to prevent foreclosures, the Wall Street Journal reports. The mortgage giants, under federal conservatorship, aim to reduce mortgage payments to no more than 38% of household income. Private banks will be encouraged by the Treasury to perform similar surgeries. More »

• Fannie Mae Posts Stunning Losses

  Nov 10, 08 5:00 PM CST
  Fannie Mae lost more in the third quarter of this year than it gained from soaring house prices between all of 2002 and 2006, the New York Times reports. The massive $29 billion loss, mainly from asset writedowns, means the company may need more than the $100 billion pledged from the government to stay afloat. Experts believe the results could also signal a prolonged fall in house prices.
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• Senator: Fire 'Socialist' Paulson

  Sep 9, 08 5:45 PM CDT
  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.
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• Fannie/Freddie Rescue Not Radical Enough

  Sep 9, 08 11:33 AM CDT
  The Treasury’s rescue plan for Fannie Mae and Freddie Mac may be “superbly crafted,” Steven Rattner writes in the Washington Post, but it won’t solve the government-sponsored entities’ problems. Continuing as private-sector enterprises is a setup that “simply doesn’t work.” The GSEs had every incentive to abuse their government backing to profit private shareholders—and they did. More »

• Fannie, Freddie Take Another Beating on Bailout Fears

  Aug 19, 08 6:51 AM CDT
  Share prices of Fannie Mae and Freddie Mac took another precipitous plunge yesterday as investors fear the home mortgage giants will not be able to avoid a government bailout, the Wall Street Journal reports. An article in Barron’s stoked smoldering concerns that the companies will not be able to raise more capital by selling shares and that a Treasury bailout will render existing shares worthless.
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