Los Angeles Business Journal

Treasury Changes Fannie and Freddie Bailout Deal

Friday, August 17, 2012

The federal government on Friday changed the terms of its bailout agreement with Fannie Mae and Freddie Mac in a way that will shrink the holdings of the two mortgage giants more quickly and will require payment to the government of all quarterly profits the companies earn. The Associated Press reports that Treasury Department hopes to answer concerns that the companies could at some point exhaust the federal support they were guaranteed when they were taken over by the government during the financial crisis.