Saturday, July 12, 2008

Fed Denies Talks On Discount Window Access For Fannie and Freddie

Federal Reserve officials haven’t discussed discount-window access with Fannie Mae and Freddie Mac, a Fed spokeswoman said Friday, according to WSJ.

“Federal Reserve officials are following the situation closely, but there have been no discussions with the GSEs about access to the discount window,” Fed spokeswoman Michelle Smith said when asked about a report that Fed Chairman Ben Bernanke had told Freddie Mac’s chief executive that the GSEs were eligible to use the facility.

Reuters reported Friday that Bernanke told Freddie Mac Chief Executive Richard Syron that Freddie Mac and Fannie Mae are eligible to use the Fed’s discount window, citing a source with knowledge of the conversation. Also on Friday, Senate Banking Committee Chairman Christopher Dodd (D., Conn.) said “there are a number of things, including things like the discount window, that they’re, I know, considering.”

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