Geithner: Purchase Agreements Amended To $200 Billion From $100 Billion
18 Februar 2009 - 3:30PM
Dow Jones News
The Treasury Department says it is increasing its funding
commitment to Fannie Mae (FNM) and Freddie Mac (FRE).
Treasury said it was changing the preferred stock purchase
agreements that were made to make sure each company maintains a
positive net worth.
The agreements are being amended to $200 billion each from the
original level of $100 billion each.
"The increased funding will provide forward-looking confidence
in the mortgage market and enable Fannie Mae and Freddie Mac to
carry out ambitious efforts to ensure mortgage affordability for
responsible homeowners," Geithner said.
He said Treasury will continue buying Fannie Mae and Freddie Mac
mortgage-backed securities to promote stability and liquidity in
the market.
-By Jeff Bater, Dow Jones Newswires; 202-862-9249;
jeff.bater@dowjones.com