Government takes over failing mortgage giants

Published



The federal government is taking over troubled mortgage firms Freddie Mac and Fannie Mae, announcing historic plans Sunday morning to stabilize the slumping companies.

The plan, a joint effort by the Department of the Treasury and Federal Housing Finance Agency, will leave the latter agency in charge of the two firms’ day-to-day operations. The Treasury will purchase roughly 80 percent of the firms and will also purchase mortgage-backed securities in the open market.

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