The Treasury Department has doubled its funding commitment to keep Fannie Mae and Freddie Mac afloat in an effort to reassure market participants that the government will continue to “stand firmly behind” the two federally chartered mortgage giants.
The Treasury extended a $100 billion commitment to each GSE when it placed Fannie and Freddie into conservorships in September.
Now the Treasury has doubled that backup support to $200 billion to ensure the government-sponsored enterprises continue to operate with a positive new worth.
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