BREAKING: FEDS TO SEIZE FANNIE MAE AND FREDDIE MAC
From the New York Times:
Senior officials from the Bush administration and the Federal Reserve on Friday informed top executives of Fannie Mae and Freddie Mac, the mortgage-finance giants, that the government is preparing a plan to seize the two companies and place them in a conservatorship, officials and company executives briefed on the discussions said.
The plan, effectively a government bailout, was outlined in separate meetings that the chief executives were summoned to attend on Friday at the office of the companies’ new regulator. The executives were told that under the plan, they and their boards would be replaced, and their shareholders virtually wiped out, but that the companies would be able to continue functioning with the government generally standing behind their debt, people briefed on the discussions said.
It is not possible to calculate the cost of any government bailout, but the huge potential liabilities of the companies could cost taxpayers tens of billions of dollars and make any rescue among the largest in United States history.
Very bad news.
1 Response to “BREAKING: FEDS TO SEIZE FANNIE MAE AND FREDDIE MAC”
Silver State Bank is #11 to shut down this year. Fannie Mae, Freddie Mac may be taken over this weekend….
Another bank hit the skids today - Silver State Bank in Nevada. Fannie Mae, Freddie Mac may be taken over this weekend.
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