The Real Deal Miami

Feds prepare for Fannie and Freddie’s demise

July 10, 2008 10:15AM

As government-backed mortgage giants Fannie Me and Freddie Mac stock values fall, the Bush administration is preparing for the worst. Recent talks in the Treasury Department have reportedly prepared contingency plans in case the lenders collapse. While the conversations are part of regular planning for federal financial regulators, sources close to the matter say that these talks have become more serious than normal.