Fannie and Freddie: Hefty Rescue

Treasury statement on Fannie (FNM) and Freddie (FRE).

US government steps in to rescue mortgage giants:

Rescue Sought for Fannie and Freddie

Each company now has a $2.25 billion credit line, set nearly 40 years ago by Congress. At the time, Fannie had only about $15 billion in outstanding debt. It now has total debt of about $800 billion, while Freddie has about $740 billion. 

So the original, 40 year-old, credit line was 2.25/15 = 15% of outstanding debt; to go back to that ratio requires $231 billion for fannie and freddie….