The U.S. president justified his administration assumed control of the two mortgage finance giants of the country, which have a loss of 14 billion dollars
The U.S. president, George W. Bush said the government decided to intervene Fannie Mae and Freddie Mac because it was "unacceptable" risk that these companies accounted for the financial and economic system.
He announced that his administration will assume control of these two big mortgage companies, which have a loss of 14 billion dollars, "to avoid a greater potential risk" in the U.S. financial system already affected.
The situation of these companies is "critical to the health of our financial system," Bush said in a statement.
The president explained that the decision was taken after federal regulators assessed the situation and determined that companies "can not continue to operate safely and solid."
That uncertainty, he said, poses an "unacceptable risk to the broader financial system and our economy".
The Treasury secretary, Henry Paulson, reported that these two companies will be led temporarily by Federal Agency of Housing Finance (FHFA, in English) and that the Treasury will make a millionaire capital injection to try to revitalize it.
Fannie Mae and Freddie Mae guaranteed mortgages in the United States worth 5.3 billion dollars, over half the country's mortgage debt.
