2 Fed Programs Aimed at Easing Tight Credit

Posted by Kendall Harmon

The Federal Reserve said Tuesday that it would buy up to $600 billion in mortgage-backed assets in another attempt to deal with the financial crisis.

The Fed said it would purchase up to $100 billion in direct obligations from the mortgage finance giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. It also will purchase another $500 billion in mortgage-backed securities, pools of mortgages that are bundled together and sold to investors.

The $600 billion effort on mortgages came as the Fed also unveiled a program to help unfreeze the market that backs consumer debt such as credit cards, auto loans and student loans.

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Filed under: * Economics, PoliticsEconomyCredit MarketsHousing/Real Estate MarketThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--The September 2008 Proposed Henry Paulson 700 Billion Bailout Package

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Posted November 25, 2008 at 8:42 am [Printer Friendly] [Print w/ comments]
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