News Journal

U.S. Fed to control Fannie and Freddie

The two major home mortgage companies Fannie and Freddie that sponsored by U.S. government will be taken over by the American government and the fed started preparing for the take over on Friday. Fed will have to resolve credit crisis faced by the company and it will also lower rates to help people buy their homes.

The market responded positively to the take over proceedings made by the government agencies and the share prices went up because the financial companies wished these government sponsored companies to continue buying mortgages.