Hank Paulson, Treasury secretary, said: ??Our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission,? signalling that the Bush administration was not contemplating a rescue takeover of the two groups and wanted public shareholders to continue owning them.Describing Freddie and Fannie as ??very important institutions?, President George W. Bush said Mr Paulson and Ben Bernanke would be ??working this issue very hard?.
Chris Dodd, Democratic chairman of the Senate banking committee, on Friday also said the Fed and the Treasury were considering opening the Fed??s discount window to Fannie and Freddie. The Fed said there had been ??no discussions? with Fannie Mae and Freddie Mac on access to the discount window.
Shares in both companies opened sharply lower on Friday, with shares of Freddie down by as much as 50 per cent. They ended the day 3.1 per cent lower at $7.75 (Freddie) and 22.4 per cent down at $ 10.25 (Fannie).
