U.S. gov´t takes over Fannie, Freddie to stabilize financial market

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Source: CCTV.com | 09-08-2008 09:15

The US government has announced it is taking control of mortgage giants Fannie Mae and Freddie Mac. The move aims to avert the potential for major financial turmoil, helping the distressed US housing market and economy. Zhang Rui has the story.

Treasury Secretary Henry Paulson says the Bush administration had to take action because Fannie Mae and Freddie Mac are so large and interwoven in the financial system, that a failure of either of them would cause great turmoil in financial markets at home and around the globe.

Secretary of the Treasury Henry Paulson (L) and Jim  Lockhart, Director of the the new independent regulator,  the Federal Finanace Agency (FHFA), announce that the  government is taking control of mortgage finance companies  Fannie Mae and Freddie Mac during a news conference at the  Office of Management Supervision in Washington, DC, Sept.  7, 2008.(Xinhua/Reuters Photo)

US Treasury Secretary Henry Paulson says, "The four steps we are announcing today are the result of a detailed and thorough collaboration between FHFA, the US Treasury and the Federal reserve.  We examined all options available and determined that this comprehensive and complimentary set of actions best meets our three objectives of market stability, mortgage availability and taxpayer protection."