Freddie Mac Treasurer Tim Bitsberger said it's business as usual at the mortgage giant but called on the U.S. Congress to quickly pass the bailout plan submitted by U.S. Treasury Secretary Henry Paulson, since the market is facing a "crisis of confidence".
Speaking at a Euromoney capital markets conference in Tokyo on Wednesday, Bitsberger pointed to "an unimaginable threat that financial institutions would not be able to find or capitalize themselves".
"That's why it's so important for some version of Secretary Paulson's plan to be passed by Congress and signed into law as soon as possible." However, there are fears that Paulson's request for $700 billion in funds to purchase illiquid assets from financial institutions could widen the current U.S national debt to levels not seen since 1954.
Bitsberger also said markets are currently in a "flight-to-quality" environment.
"No one could have predicted that the government would be forced to intervene so aggressively and so frequently."
By Todd Wailoo and edited by Stephen Huebl
©CEP News Ltd. 2008