[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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