Congress

Treasury: GSE Debt Guarantees Good Past 2009 

In a statement yesterday designed to clarify the government takeover of both Fannie Mae [stock FNM][/stock] and Freddie Mac [stock FRE][/stock], the government managed to provide tidebits of information many might have missed when the original bailout was announced. Chief among them? The fact that senior and subordinated debt holders, as well as agency MBS investors, are backed by the government past the 2009 expiration of the preferred stock purchase agreement, at least into 2010.