Fannie (FNM), Freddie (FRE) "Insolvent" Says Fed's Poole: Will Shareholders Salvage ANYTHING?

Congress had better get moving on those bailout plans…

Reuters: Mortgage lenders Fannie Mae (FNM) and Freddie Mac (FRE) are “insolvent” and may need a U.S. government bailout, former St. Louis Federal Reserve President William Poole was quoted as saying in an interview with Bloomberg.

“Congress ought to recognise that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer,” Poole was quoted as saying in an interview held on Wednesday

Chances are increasing that the government may need to bail out the two mortgage companies, Poole was quoted as saying.

See Also: Government Mulls Fannie, Freddie Bailout: Get Ready For Massive Dilution

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