US Government 'to take over mortgage giants in massive bailout
Published Date:
07 September 2008
The US government plans to take over Fannie Mae and Freddie Mac and all shareholders of the two mortgage giants will take a hit, an influential lawmaker has said.
The move to take control of the two companies, expected to be announced on Sunday, could amount to the largest financial bailout in the nation's history, and is a bid to ward off further damage to a housing market in its deepest downturn since the Great Depression.
"I think all shareholders will be disadvantaged," Rep. Barney Frank, chairman of the U.S. House of Representatives Financial Services Committee, told Reuters.
"The government will act as the new management," implying the chief executives would be ousted, according to Frank, who spoke to U.S. Treasury Secretary Paulson on Friday about the plan to put the companies into federal conservatorship to protect the interest of all parties.
The full article contains 154 words and appears in n/a newspaper.
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Last Updated:
07 September 2008 1:35 PM
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Source:
n/a
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Location:
Yorkshire
