U.S. housing agencies would need more taxpayer funds in a crisis: regulator
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
A stands outside Fannie Mae headquarters in Washington February 21, 2014. REUTERS/Kevin Lamarque
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
WASHINGTON (Reuters) - Fannie Mae and Freddie Mac, two government-controlled housing finance agencies, would need a big cash injection to weather another financial meltdown, a government regulator said on Monday.
Fannie and Freddie would need as much as $126 billion in taxpayer funds to come through a serious downturn, according to a 'stress test' from the Federal Housing Finance Agency.
The companies, which were once owned by shareholders, have drawn $187 billion from the U.S. Treasury since they were seized by the government in September 2008 as the global financial crisis tightened.
Since then, as the housing market has strengthened, they have returned roughly $250 billion to the Treasury.
Lawmakers have not settled on the future of two companies.
The 'stress test' required by the Dodd Frank reform legislation of 2010 projected the companies would have to draw at least $49 billion to $126 billion in the case of a serious economic downturn.
(Reporting by Patrick Rucker; Editing by Dan Grebler)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Egyptian court rejects appeal by Islamist militant Adel Habara over death sentence
- Ho, ho, ho! SantaCon is coming to town
- After impeachment of South Korean president, anti-Park rallies resume
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!