Thursday, July 10, 2008

Government Bailout Looming for Fannie Mae, Freddie Mac?

From Bloomberg:
Chances are increasing that the U.S. may need to bail out Fannie Mae
and the smaller
Freddie Mac, former St. Louis Federal Reserve President William
said in an interview. Freddie Mac owed $5.2 billion more than
its assets were worth in the first quarter, making it insolvent under fair value
accounting rules, he said. The fair value of Fannie Mae's assets fell 66 percent
to $12.2 billion, data provided by the Washington-based company show, and may be negative next quarter, Poole said.

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