RSG Admin
07-11-2008, 08:04 AM
By Brendan Murray
July 11 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson said federal regulators are backing Fannie Mae and Freddie Mac, the biggest providers of financing for U.S. home loans, in ``their current form.''
``Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission,'' Paulson said in a statement today. ``We are maintaining a dialogue with regulators and with the companies.''
Shares in the government-chartered companies tumbled for a third day as concern escalated the government may be forced to start a rescue of the companies.
Fannie Mae fell $4.67, or 35 percent, to $8.53 at 10:14 a.m. in New York Stock Exchange trading to the lowest level in more than 17 years. Freddie Mac slid $3.26, or 41 percent, to $4.74.
``We appreciate Congress' important efforts to complete legislation that will help promote confidence in these companies,'' he said.
A government takeover of one or both companies is among several options being weighed by the Bush administration, said Joshua Rosner, an analyst with Graham Fisher & Co. Inc., who met with officials in Washington yesterday.
Officials may push for the firms, which own or guarantee almost half of the $12 trillion in U.S. home loans outstanding, to be placed in a conservatorship if their problems get worse, Rosner said. A government-led takeover would likely make the common stock of each company worthless
http://tinyurl.com/6lto8q
July 11 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson said federal regulators are backing Fannie Mae and Freddie Mac, the biggest providers of financing for U.S. home loans, in ``their current form.''
``Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission,'' Paulson said in a statement today. ``We are maintaining a dialogue with regulators and with the companies.''
Shares in the government-chartered companies tumbled for a third day as concern escalated the government may be forced to start a rescue of the companies.
Fannie Mae fell $4.67, or 35 percent, to $8.53 at 10:14 a.m. in New York Stock Exchange trading to the lowest level in more than 17 years. Freddie Mac slid $3.26, or 41 percent, to $4.74.
``We appreciate Congress' important efforts to complete legislation that will help promote confidence in these companies,'' he said.
A government takeover of one or both companies is among several options being weighed by the Bush administration, said Joshua Rosner, an analyst with Graham Fisher & Co. Inc., who met with officials in Washington yesterday.
Officials may push for the firms, which own or guarantee almost half of the $12 trillion in U.S. home loans outstanding, to be placed in a conservatorship if their problems get worse, Rosner said. A government-led takeover would likely make the common stock of each company worthless
http://tinyurl.com/6lto8q