Bloomberg.com
The steps would bring the U.S. closer to giving an explicit guarantee for the debt sold by the shareholder-owned, federally chartered companies. That reflects a need for the government to bail out an economy that's been rocked by the worst housing recession in 25 years, the credit crisis, and soaring energy costs.
``They appear to be crossing the Rubicon,'' Sean Egan, president of Egan-Jones Ratings Co., a credit-rating company based in Haverford, Pennsylvania, said, referring to Caesar's invasion of Rome to set up a dictatorship.
The announcements followed weekend talks between the firms, government officials, lawmakers and regulators, after Fannie Mae and Freddie Mac lost about half their value last week.
`Explicit' Guarantee
Paulson's proposal, which the Treasury anticipates will be incorporated into an existing congressional bill and approved this week, signals a shift toward an explicit guarantee of Fannie Mae and Freddie Mac debt. The shareholder-owned companies are government-sponsored enterprises, giving investors the indication of an implicit federal backing.
Fannie Mae gained 13.7 percent to the equivalent of $11.65 at 10:13 a.m. in Frankfurt trading, and Freddie Mac advanced 9.5 percent to $8.49. Fannie Mae tumbled 45 percent in New York Stock Exchange composite trading last week and Freddie Mac lost 47 percent of its value.
- Forums
- ASX - By Stock
- federal reserve to rescue us mortgage giants
Bloomberg.comThe steps would bring the U.S. closer to giving an...
-
- There are more pages in this discussion • 29 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add DJIA (INDEXDJX) to my watchlist
(20min delay)
|
|||||
Last
26,683 |
Change
82.730(0.31%) |
Mkt cap ! n/a |
Open | High | Low |
26,683 | 0.00 | 0.00 |
Featured News
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online