Fannie and Freddie going under federal control

The government has formulated a plan to put troubled mortgage giants Fannie Mae and Freddie Mac under federal control, dismiss their top executives and prop them up financially, federal officials told the two companies yesterday, according to three sources familiar with the conversations.

 

Under the plan, which could prompt one of the most sweeping government interventions in the workings of financial markets in U.S. history, federal officials would place the firms under a conservatorship, a legal status giving the government the option and time to restructure and revive the companies, the sources said. The value of the companies’ common stock would be diluted but not wiped out; while the holdings of other securities, including company debt and preferred shares might be protected by the government.-MSNBC

There goes the hard working American’s tax monies…ain’t it fucking grand?

Sphere: Related Content

Related posts:

1. What Now Army Of One? Now the United States is the only remaining occupier...
2. Anthony Weiner-Medicare, aka single-payer, for everyone! I never watch Morning Joe. Never. I hate his dumb...
3. Federal Judge grants habeas petition to Gitmo prisoner. This looks like a good omen to me. From...