U.S. Weighs Takeover of Two Mortgage Giants

U.S. Weighs Takeover of Two Mortgage Giants

www.nytimes.com

Alarmed by the growing financial stress at the nation’s two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday.

The companies, Fannie Mae and Freddie Mac, have been hit hard by the mortgage foreclosure crisis.

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When I first read the title I thought this might be a good thing. As I read on I am not so sure. The assets are held by over seas banks and investors, which could top 12 trillion. If there is a government take over dissolving the banks is not to intent. It would be for the tax payers to bail them out.

www.nytimes.com
(visit the link for the full news article)

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