US gives blank check to Fannie & Freddie

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mikepdx

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The Treasury announced Thursday it was removing the caps that limited the
amount of available capital to the companies to $200 billion each.

Unlimited access to bailout funds through 2012 was
"necessary for preserving the continued strength and stability of the mortgage market," the Treasury said.
Fannie and Freddie purchase or guarantee most U.S. home mortgages
and have run up huge losses stemming from the worst wave of defaults since the 1930s.

"The timing of this executive order giving Fannie and Freddie a blank check is no coincidence,"
said Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee.
He said the Christmas Eve announcement was designed "to prevent the general public from taking note."

U.S. Move to Cover Fannie, Freddie Losses Stirs Controversy - WSJ.com
 
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