by Bill McBride on 12/24/2009 03:14:00 PM
Thursday, December 24, 2009
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.A press release before the holiday ... I was wondering what would come out today.
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.
Update: Here is the press release: TREASURY ISSUES UPDATE ON STATUS OF SUPPORT FOR HOUSING PROGRAMS (ht Steelhead)
Posted by Bill McBride on 12/24/2009 03:14:00 PM