Saturday, September 06, 2008

Fannie/Freddie: Gone?

Seems to be the last chapter for Fannie/Freddie.

This weekend, there are many reports that Fannie and Freddie will have their managements and directors dismissed, their equity extinguished (or nearly so), and enter what's called a government conservatorship.

In essence, the firms will be allowed to continue their current business operations, but under government control, and their shareholders will be wiped out

Meaning that the Federal Government will be The Big Dog in home mortgages, sine the 'quasi-private' window-covering.

THAT has implications, to say the least.

Much more here: http://bigpicture.typepad.com/comments/2008/09/fannie-freddi-1.html

HT: RedState

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