Fannie Mae and Freddie Mac and the Federal Government

Before I start this blog post I want to state I am not an economist. Yes, I know how to find the GINI index and all sorts of other fun economic data, but I don't always know what it means. That said, here is my attempt to provide some information on what the government is doing in regards to Fannie Mae and Freddie Mac.

First, the Treasury:

• Friday's statement, which is very short and has no details.
• Sunday's statement, which still doesn't have details on exactly how they are going to do it, but does provide specifics on how they are going to move forward during this "current housing correction."

Second, the Federal Reserve:

• Sunday's statement, which is only a paragraph long, but gives the "Federal Reserve Bank of New York the authority to lend to Fannie Mae and Freddie Mac should such lending prove necessary. "

Third, the Senate:

• Senator Dodd (Chair of Senate Committee on Banking, Housing and Urban Affairs) statement on Fannie Mae and Freddie Mac.
• H.R.3221 this is the Housing Reform Bill just passed on Friday in the Senate that Senator Dodd is referring to in his statement.
• Senate vote on H.R. 3221

Finally, News Media reaction:

• "Rescue Debate: Paulson Insists Fannie, Freddie Holders Lose" from Wall Street Journal
• "U.S. Unveils Plan to Aid Mortgage Giants: Federal Officials Offer Sweeping Proposal to Help Shore Up Fannie, Freddie" from the Washington Post

Still want more? The library has a collection of Business and Economic guides.