The Real Deal Miami

Rush to help Fannie, Freddie

July 15, 2008 08:11AM

The Bush administration, led by Treasury Secretary Henry Paulson, quickly arranged a plan to help Fannie Mae and Freddie Mac on Sunday night, after being told further erosion of the government-backed mortgage giants would have global consequences. Fannie and Freddie’s debts are held by thousands of foreign and domestic banks, pension funds, mutual funds and other investors. The two companies have a combined debt of $1.5 trillion and own or guarantee $5 trillion in mortgages. They have contracts with other institutions worth $2 trillion.