Government Takes Control of Fannie, Freddie

Today the federal government has taken control of mortgage giants Fannie Mae and Freddie Mac. The Treasury Secretary said Fannie and Freddie posed a systemic risk to the economic health of the country and "cannot continue in their current form." Both of the top executives at both companies have been dismissed, and thus the recently formed Federal Housing Finance Agency (FHFA) has been appointed conservator of both of the GSEs, and is being held accountable for reorganizing and rehabilitating their business affairs.