Weekend Seize: Government Takes Control of Fannie, Freddie

In perhaps the worst-kept secret on Wall Street, the federal government seized control of Fannie Mae and Freddie Mac, the government-sponsored mortgage enterprises. The conservatorship harkens to the seizes the Federal Deposit Insurance Corp. undertakes for insolvent banks.

This latest turn for Fannie and Freddie is nothing short of remarkable. Just months ago the GSEs were massive arbiters of the U.S. mortgage market. Today, the presumed “backing” of the federal government was realized with the taking over of Fannie’s and Freddie’s day-to-day operations by a conservator.

We’ll have more coverage of the seizure of Fannie and Freddie tomorrow. Meanwhile, visit this Department of the Treasury’s special online page dedicated to the conservatorship. Don’t bother going to Fannie’s or Freddie’s web site. There is not a mention of what transpired on either.