The Federal Rescue of Fannie and Freddie

Document Sample
The Federal Rescue of Fannie and Freddie Powered By Docstoc
					The Fe
				
DOCUMENT INFO
Description: In a historic move, the newly created Federal Housing Finance Agency (FHFA), after what it called "a painstaking review," took control of mortgage giants Fannie Mae and Freddie Mac on Sunday, September 7, by placing them into conservatorship. The boards of both Fannie and Freddie consented to the move, according to James B. Lockhart, director of FHFA, the successor organization to the Office of Federal Housing Enterprise Oversight. At the same time, the federal government purchased 79.9% ownership of each of the government-sponsored enterprises (GSEs) with the purchase of senior preferred stock for $1 billion for each company. Treasury also announced agreements with each GSE to purchase mortgage-backed securities (MBS) from new Fannie and Freddie MBS issues in the open market. The deteriorating outlook for Fannie Mae and Freddie Mac was reflected in their falling share prices. The takeover announcement also included notice of a number of changes in the way that Fannie and Freddie will do business.
BUY THIS DOCUMENT NOW PRICE: $6.95 100% MONEY BACK GUARANTEED
PARTNER ProQuest LLC
ProQuest creates specialized information resources and technologies that propel successful research, discovery, and lifelong learning.