The Real Deal Miami

Government may bail out Fannie and Freddie 

August 20, 2008 08:12AM

Although the U.S. Treasury Department has said a government bailout for Fannie Mae and Freddie Mac wasn’t needed, the companies’ financial conditions are worsening and the government may have to provide assistance. Fannie and Freddie’s stock prices fell 24 percent in the past two days, and more than 85 percent since December. The companies have lost $14 billion in the last year, and more losses are expected. The federal housing rescue package approved late last month gives the Treasury Department the authority to bail out Fannie and Freddie