Saving Fannie and Freddie was nationalisation pure and simple

"Stock markets were in jubilant mood yesterday after the US treasury announced it was putting the two big beasts of the American mortgage market to "conservatorship". Don't be misled by this ugly piece of economics jargon: it's just another way of saying nationalisation - and it was somewhat bizarre to find the equity markets of Tokyo, London and New York, where dealers profess to exalt the free market, whooping for joy at the state taking a grip."

Former executives at Fannie and Freddie stand to collect big paychecks

"Under the terms of his employment contract, Daniel Mudd, the departing head of Fannie Mae, stands to collect $9.3 million in severance pay, retirement benefits and deferred compensation, provided his dismissal is deemed to be "without cause," according to an analysis by the consulting firm James F. Reda & Associates. Mudd has already taken home $12.4 million in cash compensation and stock option gains since becoming chief executive in 2004, according to an analysis by Equilar, an executive pay research firm. Richard Syron, the departing chief executive of Freddie Mac, could receive an exit package of at least $14.1 million, largely because of a clause added to his employment contract in mid-July as his company's troubles deepened. He has taken home $17.1 million in pay and stock option gains since becoming chief executive in 2003."

America - the only country where you can be a total failure and get rich too - what a country...

Mortgage Giant Overstated the Size of Its Capital Base

"The government’s planned takeover of Fannie Mae and Freddie Mac, expected to be announced on Sunday, came together after advisers poring over the companies’ books for the Treasury Department concluded that Freddie’s accounting methods had overstated its capital cushion, according to regulatory officials briefed on the matter."

Enron II...

U.S. Unveils Takeover of Two Mortgage Giants

"The Treasury Department seized control of Fannie Mae and Freddie Mac, the nation’s giant quasi-public mortgage finance companies, and announced a four-part rescue plan that includes an open-ended guarantee from the Treasury Department to provide as much capital as they need stave off insolvency."

Record bail-out in US of Fannie Mae and Freddie Mac

"THE US TREASURY will today announce a rescue of Fannie Mae and Freddie Mac, two giant American mortgage banks, in what is likely to be the biggest financial bail-out of recent history."