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

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Both companies were placed into a government conservatorship that will be run by the Federal Housing Finance Agency, the new agency created by Congress this summer.

The takeover also includes the departure of the executives and board of directors of both institutions.

Fannie Mae and Freddie Mac own or guarantee more than 5 trillion dollars of U.S. home loans, about half the total outstanding loans in the country.

The stocks of the two companies have fallen more than 90 percent in the past year and in recent months foreign investors have pared their holdings of the companies' securities.

Editor:Gao Jia