Wednesday, August 09, 2017

Fannie and Freddie could need $100 billion bailout in next crisis, stress test finds - MarketWatch

Image result for Fannie and Freddie could need $100 billion bailoutFannie and Freddie could need $100 billion bailout in next crisis, stress test finds - MarketWatch: "Fannie Mae and Freddie Mac could need a taxpayer bailout of as much as $99.6 billion if a severe economic downturn gripped the U.S., their regulator said Monday.
The Federal Housing Finance Agency released the results of a stress test that examined how the mortgage finance companies would perform in what’s called a “severely adverse scenario.”
...The test found that Fannie FNMA, -0.36%   and Freddie FMCC, -0.38%   together would require between $34.8 and $99.6 billion, FHFA said.
...The two government-sponsored enterprises have operated under federal conservatorship since the 2008 crisis..."

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