Thursday, December 24, 2009

Treasury: More Support for Fannie and Freddie

by Bill McBride on 12/24/2009 03:14:00 PM

From the WSJ: U.S. Uncaps Support for Fannie, Freddie

The Treasury said it would provide capital as needed to Fannie Mae and Freddie Mac over the next three years, in a move aimed at soothing investors' concerns about the government's continued support of the mortgage giants.

Treasury also will suspend its purchases of the companies' mortgage-backed securities ...

Under the new terms announced Thursday, the cap on Treasury's support would increase according to how much each firm loses in a quarter, beginning the first quarter of next year and through 2012. The cap in place at the end of 2012 would apply thereafter.
A press release before the holiday ... I was wondering what would come out today.

Update: Here is the press release: TREASURY ISSUES UPDATE ON STATUS OF SUPPORT FOR HOUSING PROGRAMS (ht Steelhead)

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