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CBO: At Least 50% Chance GSEs Won't Need Treasury Rescue.(Managing REO)(Congressional budget office)(government sponsored enterprises)(Brief article)
Washington-The Congressional Budget Office estimates there is a greater than 50% chance the Treasury Department will not need to invest in Fannie Mae or Freddie Mac.
Then again, CBO notes that if Treasury needs to prop up the two GSEs it would add up to $25 billion to the federal budget during fiscal years 2009 and 2010. CBO unveiled its estimates in a letter to Rep. John Spratt, D-S.C., chairman of the House Budget Committee.
It notes if Treasury were allowed to invest in GSE securities that would bring about a positive investor response.
As of ...
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Source: HighBeam Research, CBO: At Least 50% Chance GSEs Won't Need Treasury Rescue.(Managing...