This is Argyn's blog. I comment on topics of my interests such as software, math, finance, and music. Also, I write about local events in Northern Virginia, USA and all things related to Kazakhstan

Sunday, September 07, 2008

It's over, baby!

U.S. seizes Fannie and Freddie
Treasury chief Paulson unveils historic government takeover of twin mortgage buyers. Top executives are out.
By David Ellis, staff writer
Last Updated: September 7, 2008: 2:24 PM EDT

NEW YORK ( -- Federal officials on Sunday unveiled an extraordinary takeover of Fannie Mae and Freddie Mac, putting the government in charge of the twin mortgage giants and the $5 trillion in home loans they back.

What a year we had! I quit Fannie in July last year to work in New York. After only two weeks of work we've got "credit crunch". I joined the company, which was in the eye of that storm. Today Fannie Mae and Freddie Mac are taken over by government, their portfolio would slashed and capital would be injected by Treasury. This is all about capital cushion. You need capital to be considered safe and sound. Other things are important too, but capital is the first line of defense.

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