    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book II)]
    [September 7, 2008]
    [Pages 1175-1176]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on the Fannie Mae and Freddie Mac Corporations
    September 7, 2008

        Today the Federal Housing Finance Agency (FHFA), the regulator of
    Fannie Mae and Freddie Mac, determined that these housing mortgage
    companies cannot continue to operate safely and soundly and fulfill
    their public mission, posing an unacceptable risk to the broader
    financial system and our economy. FHFA announced that it will place the
    companies in conservatorship and appoint new leadership.
        The Treasury Department and the Federal Reserve are taking
    additional steps that complement FHFA's actions and will support market
    stability, add to mortgage availability, and protect taxpayers. These
    agencies are taking the necessary steps to prevent a disruption of our
    financial system.
        Putting these companies on sound financial footing and reforming
    their business practices is critical to the health of our financial
    system and to making further progress with the housing correction that
    today is weighing heavily on our economy. Allowing the companies to fail
    or further deteriorate would damage our home mortgage market and could
    weaken other credit markets that are unrelated directly to housing.
    Americans should be confident that the actions taken today will
    strengthen our ability to weather the housing correction and are
    critical to returning the economy to stronger sustained growth in the
    future.
        The actions taken today are temporary and will support housing
    finance in the near term. As we determine the appropriate role for the
    companies in the future, it is crucial that they not pose similar risks
    to our economy or the financial system again.

    Note: The Office of the Press Secretary also released a Spanish language
    version of this statement.

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