Fannie, Freddie to Get $15 Billion From U.S., the Times Says
By Jenny Gross
July 12 (Bloomberg) -- Henry Paulson, the U.S. Treasury secretary, is planning a $15 billion capital injection into U.S. mortgage companies Fannie Mae and Freddie Mac, the Times of London reported, without citing anyone.
The plan is ``high'' on the list of solutions to the nation's mortgage crisis, the newspaper said. In exchange for the capital, the U.S. government would get a new class of shares, the newspaper reported, citing no one.
Paulson's plan also would allow the two mortgage companies to use the Federal Reserve's discount window so they can borrow from the central bank, the Times reported.
Fannie Mae and Freddie Mac own or guarantee almost half the $12 trillion of home loans in the U.S. and lost about half their market value last week on speculation of a government bailout, the London-based newspaper said. |
