Federal bailout for top US mortgage firms

08/09/2008 01:16:29

The U.S. Treasury Department Secretary and the head of the Federal Housing Finance Agency expected to announce plans for a federal takeover of mortgage finance companies Fannie Mae and Freddie Mac.

The two companies are the largest sources of U.S. home mortgage finance.

The move could amount to the largest financial bailout in U.S. history, and is a bid to ward off further damage to a housing market in its deepest downturn since the Great Depression.

Treasury Secretary, Henry Paulson, has already briefed the two aspiring U-S presidential candidates, Barack Obama and John McCain.

Mr Obama says any intervention must benefit the public.

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