The New York Times’ Stephen Labaton reports on the big news of the weekend– Treasury Secretary Henry Paulson announcing a potential $300 billion bailout for mortgage financiers Fannie Mae and Freddie Mac. The stock of both companies, which are partly owned by the federal government, fell sharply last week, and has generally been shaky at best during the foreclosure crisis. Also, the Federal Reserve announced it was extending a line of credit to the mortgage giants.

Democrats who lead Congress’s finance committees expressed approval of the administration’s plans. Indeed, the anxiety of Fannie and Freddie going under may transcend partisan lines– the company is invested in nearly half the nation’s mortgages, an estimated $5 trillion in loans.-MB

Comment RSS - You can skip to the end and leave a response. Pinging is currently not allowed.