NOBEL ECONOMIST WELCOMES US MORTGAGE MOVE - The US government has bailed out two mortgage lenders, saying that Fannie Mae and Freddie Mac are so large and interwoven in the US financial system that a failure of either would create great turmoil in financial markets in the US and around the globe.

The U.S. government said on Sunday that it will take over two mortgage giants Fannie Mae and Freddie Mac in order to stabilize the financial market. Treasury Secretary Henry Paulson said it was "necessary" for the Bush government to take actions because "Fannie Mae and Freddie Mac are so large and so interwoven in our financial system that a failure of either of them would cause great turmoil in ...

"Too big to fail" is an expression that suits Fannie Mae and Freddie Mac. The US Treasury Secretary, Henry Paulson, said yesterday that the two institutions "are so large and interwoven in our financial system that a failure of either of them would create great turmoil in financial markets".

What now for Fannie, Freddie, shareholders, taxpayers and the mortgage market?

Federal officials said Sunday that they will take control of beleaguered mortgage giants Fannie Mae and Freddie Mac in the government's most aggressive move to stabilize a financial industry reeling from a year-old mortgage and credit crisis.

Asian and European markets, as well as U.S. stock futures, soared Monday after the U.S. government took control of suffering mortgage giants Fannie Mae and Freddie Mac over the weekend.

The Bush administration, acting to avert the potential for major financial turmoil, announced Sunday that the federal government was taking control of mortgage giants Fannie Mae and Freddie Mac.

The Bush administration seized control Sunday of troubled mortgage giants Fannie Mae and Freddie Mac, aiming to stabilize the housing market turmoil that is threatening financial markets and the overall economy.

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The Treasury Department seized control of Fannie Mae and Freddie Mac , the giant quasi-public mortgage finance companies, on Sunday and announced a four-part rescue plan that included an open-ended guarantee to provide as much capital as they need to stave off insolvency, according to The New York Times’s Edmund Andrews.