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Paulson Offers No Hint of Fannie, Freddie Bailout

Posted by Charlie Kilo on July 11th, 2008

Watch The Fed ride in on their white horse to “save” this one:

Alarm swelled on Friday that Fannie Mae and Freddie Mac might run short of capital, placing the fragile U.S. economy at even greater risk, as the Bush administration offered no hint of a government bailout of the largest U.S. providers of financing for mortgages.

Treasury Secretary Henry Paulson, responding to reports a government takeover was under consideration, said “our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission.”

Worries about Fannie and Freddie grew after The New York Times said the administration was considering a plan to put the companies, thought to have implicit government backing, into a conservatorship if their problems worsen, citing people briefed about the plan.