US Treasury steps in
Unable to stomach continued erosion of confidence in mortgage lenders Fannie Mae and Freddie Mac, the Treasury Department has announced an ambitious support plan
for the two firms. The proposal, which will be considered by the Congress this week, stops short of explicitly guaranteeing the firms' debts, but it would allow the Treasury to invest directly in and lend to the companies. While the plan is under consideration, the Federal Reserve has opened its discount window to the lenders.
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