U.S. to take control of Fannie and Freddie: reports

Saturday, September 6, 2008

U.S. to take control of Fannie and Freddie: reports

By Glenn Somerville and Al Yoon Sat Sep 6, 1:04 AM ET

WASHINGTON/NEW YORK (Reuters) - The U.S. government plans to put
government sponsored mortgage finance companies Fannie Mae (FNM.N)
and Freddie Mac (FRE.N) under federal control, the New York Times
and Washington Post newspapers reported late Friday, in what could
be the largest financial bailout in the nation's history.
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The two government sponsored enterprises (GSEs) own or guarantee
almost half of the country's $12 trillion in outstanding home
mortgage debt.

The Wall Street Journal reported earlier on Friday that the U.S.
Treasury Department is close to finalizing a plan to restructure
the two companies that includes changes to their senior management.

The plan could be announced as early as this weekend, the Journal
said.