Financial Trouble Forces Feds To Step In, Take Over Fannie, Freddie

The Wall Street Journal reports:

• In its most dramatic market intervention in years, the U.S. government seized two of the nation's largest financial companies, taking direct responsibility for firms that provide funding for around three-quarters of new home mortgages. Treasury Secretary Henry Paulson announced plans Sunday to take control of troubled mortgage giants Fannie Mae and Freddie Mac, replace the companies' chief executives and provide up to $200 billion in capital to restore the firms to financial health.

For the full story, see U.S. Seizes Mortgage Giants (Government Ousts CEOs of Fannie, Freddie; Promises Up to $200 Billion in Capital).