Treasury chief Paulson unveils historic government takeover of twin mortgage buyers. Top executives are out.
By David Ellis, CNNMoney.com staff writer
Last Updated: September 7, 2008: 2:24 PM EDT
NEW YORK (CNNMoney.com) -- 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.