Government Support For Fannie Mae and Freddie Mac
In addition to the government conservatorship, which CBO estimates will increase the federal government's net liabilities by $238 billion, several government agencies have taken steps to increase liquidity within Fannie Mae and Freddie Mac. Among these steps includes:
- Federal Reserve purchases of $23 billion in GSE debt (out of a potential $100 billion) and $53 billion in GSE-held mortgage backed securities (out of a potential $500 billion).
- Federal Reserve purchases of $24 billion in GSE debt.
- Treasury Department purchases of $14 billion in GSE stock (out of a potential $200 billion).
- Treasury Department purchases of $71 billion in mortgage backed securities
- Federal Reserve extension of primary credit rate for loans to the GSEs
Read more about this topic: Federal Takeover Of Fannie Mae And Freddie Mac
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