reading the BOLD RED TYPE pretty much sums it up.
A pretty nifty move as no congressional support is needed. – BC
special Christmas day posting by David Kotok: Government by Stealth: the GSE affair continues – David Kotok – … We didn’t plan on writing today but are doing so to be sure our clients and readers and the especially the 300 worldwide journalists on our list see the action just taken by the Treasury Department under Secretary Geithner. It was clearly designed to minimize the press coverage of the changes in the GSEs. This item was released after the closure of the healthcare debate and after the extension of the debt limit passed and after the president left for his Hawaii trip. Sent out on Thursday afternoon, Christmas Eve, the press release outlines the many changes that Treasury is making because of the worsening conditions of Fannie and Freddie. And it paves the way for the recognition of losses in the hundreds of billions in the GSE mortgage pools where the face amounts of the mortgages exceed the property market values or foreclosure amounts. … – Cumberland Advisors
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US Tsy Unveils Changes to Programs Supporting Fannie,Freddie – The U.S. Treasury waited until markets closed Christmas Eve to announce a series of changes to its support of the housing-related government sponsored enterprises, which it says will ensure stability of the secondary mortgage market without increasing expected taxpayer exposure. … But they said it should give current and future investors in mortgage-backed securities guaranteed by GSEs and GSE debt assurance they can continue to purchase that debt with confidence in the solvency of the institutions. … – iMarketNews.com
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U.S. promises unlimited financial assistance to Fannie Mae, Freddie Mac – By Zachary A. Goldfarb – The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress. The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama’s current term. – Washington Post
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US removes $400b cap on aid to Fannie Mae, Freddie Mac – By J.W. Elphinstone – … So far, taxpayers have shelled out $111 billion to the pair. Yesterday, Treasury officials said the cap would be replaced with a flexible formula. The goal is to ensure the two agencies can stand behind the billions of dollars in mortgage-backed securities they sell to investors. .. – AP Boston Globe