Politics & Government

September 7, 2008

Treasury seizes Fannie Mae, Freddie Mac to bolster housing market

The historic seizure Sunday of mortgage finance titans Fannie Mae and Freddie Mac is expected to bolster the nation's sinking housing sector by lowering mortgage rates and jump-starting the obscure background market that is vital to home lending. Treasury Secretary Henry Paulson said the government was seizing Fannie Mae and Freddie Mac on the grounds that their weak accounting standards and ambiguous role as quasi-public enterprises posed a growing threat to global financial markets.

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