Despite the fact that both companies claim to have more than enough capital, mortgage giants Fannie and Freddie are hemorrhaging money to the tune of $14 billion (and counting) in the last year. Things aren't looking so hot; most experts agree that the firms will need to raise yet more money, a task that might be a bit tricky as the companies stock plummets — in the last two days, share prices for both companies fell by over 24%. It's starting to look like the only hope for Frannie Mae and Freddie Mac is a direct injection of money from Big Brother. $40 billion should just about do it. Luckily, the government passed legislation last month allowing them to do just that.
· Some Say Bailout of Housing Giants Is Inevitable [NYT]
· Morning Mortgage Meltdown: Bush Bails Fannie and Freddie [Curbed SF]
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