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Morning Mortgage Meltdown: Gov to Bail Fannie and Freddie?

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]