Preferred Stock Investments
Fannie and Freddie Bailout
On Sep. 7, 2008, Fannie and Freddie were essentially nationalized: placed under the conservatorship of the Federal Housing Finance Agency. Under the terms of the rescue, the Treasury has invested billions to cover the companies' losses.
Initially, Treasury Secretary Hank Paulson put a ceiling of $100 billion for investments in each company. In February of 2009, Tim Geithner raised it to $200 billion. In December of 2009, the Treasury removed any cap for the aid. The money was authorized by the Housing and Economic Recovery Act of 2008, passed in July, 2008.
The following list shows the 2 recipients of Preferred Stock Investments.
|Name||State||Date Entered||Disbursed by PSI||Returned to PSI|
|Fannie Mae||D.C.||Mar. 31, 2009||$119,836,000,000||$181,325,000,000|
|Freddie Mac||Va.||Nov. 29, 2008||$71,648,000,000||$119,681,000,000|