Oh I forgot. The game has changed:
Fannie, Freddie Are in `Sound Situation,' Dodd Says (Correct)
By Justin Blum
(Corrects spelling of Kyl's name in fourth paragraph.)
July 13 (Bloomberg) -- Fannie Mae and Freddie Mac, the largest providers of U.S. mortgage financing, are in a ``sound situation,'' said Senator Christopher Dodd.
``They have more than adequate capital, in fact more than the law requires,'' Dodd, a Connecticut Democrat who is chairman of the Senate Banking Committee, said on CNN's ``Late Edition'' today. ``They have access to capital markets. They're in good shape.''
The two companies' shares reached the lowest level in more than 17 years on July 11, making it tougher for them to raise capital at a time when they account for about 80 percent of mortgages packaged into bonds. A failure of the companies would likely send mortgage rates higher, causing further declines in home sales and prices.
The U.S. government during the next few days will be ``exercising a lot of different options that it has available to ensure that they don't get into a financial situation where they can't cover their obligations,'' Senator Jon Kyl, a Republican from Arizona who is a member of the Senate Finance Committee, said on the CNN program.
Fannie Mae and Freddie Mac own or guarantee about half the $12 trillion in U.S. home loans outstanding.
To contact the reporter on this story: Justin Blum in Washington at jblum4@bloomberg.net.
Last Updated: July 13, 2008 12:57 EDT |
