Fannie, Freddie rescue plan to cost $25 bln
US Treasury Department's rescue plan for troubled mortgage giants Fannie Mae and Freddie Mac could cost taxpayers $25 billion, the Congressional Budget Office said.
“The CBO estimates that there is a significant chance - probably better than 50% - that the proposed new Treasury authority would not be used before it expired at the end of December 2009,” he said.
Treasury Secretary Henry Paulson has urged Congress to pass this week his proposal to support the troubled Fannie Mae and Freddie Mac.
Of the $5 trillion in debt and mortgage backed securities guarantees issued by these two companies, over $3 trillion is held by US financial institutions, and over $1.5 trillion is held by institutions and central banks overseas, said Paulson in a speech delivered at the New York Public Library on Tuesday.
“Because of their size and scope, Fannie and Freddie's stability is critical to financial market stability,” he noted. (Xinhua)
ADVERTISEMENT
Mapei Targets 6% Higher Revenue This Year
Parliament Negates Mandatory Membership in MOK
Number of Residential Developments in Cities Falls 9%Â
Veronika Spanarova Wins Expat CEO of the Year Award 2023
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
