Fannie and Freddie: Rescue Links
Treasury statement on Fannie and Freddie
US government steps in to rescue mortgage giants
Rescue Sought for Fannie and Freddie
Each company now has a $2.25 billion credit line, set nearly 40 years ago by Congress. At the time, Fannie had only about $15 billion in outstanding debt. It now has total debt of about $800 billion, while Freddie has about $740 billion.
So the original, 40 year old, credit line was 2.25/15 = 15% of outstanding debt, to go back to that ratio requires $231 billion for fannie and freddie….