The Latest in Unprecedented Scams--Er--Plans
U.S. Unveils Plan to Aid Mortgage Giants
Federal Officials Offer Sweeping Proposal to Help Shore Up Fannie, Freddie
By Neil Irwin and Jeffrey H. Birnbaum
Washington Post Staff Writers
Monday, July 14, 2008; A01
The federal government unveiled a broad program yesterday evening to bolster troubled mortgage giants Fannie Mae and Freddie Mac, extending unprecedented support to the companies and proposing new authority to lend them money and even buy their stock.
Scrambling to announce the initiative before the trading week began, federal officials said they would allow the firms for the first time to borrow money from the Federal Reserve. Officials are also seeking permission from Congress to temporarily increase the amount the companies can borrow from the Treasury and enable the government to invest directly in the firms if conditions worsen.
No matter how you slice this rotten apple, the Fed is essentially …