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The U.S. government flew to the rescue of GSEs Fannie Mae and Freddie Mac over the weekend with Treasury Secretary Henry Paulson announcing that the government would increase the failing bond insurers' line of credit, have the temporary ability to purchase equity and that the Fed would be available to...
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Treasury Secretary Henry Paulson announced Monday that he was in favor of temporarily lifting the dollar limit on loans purchased by Freddie Mac and Fannie Mae, allowing them to provide a market for so-called " jumbo mortgages ." Under current rules, the two government sponsored enterprises (GSEs) cannot...