Friday, July 11, 2008

Paulson Issues Statement on Freddie Mac and Fannie Mae

Treasury Secretary Henry Paulson issued a statement Friday morning amid sharp drops in the stock of Fannie Mae and Freddie Mac. Here is the text of the Paulson statement released by the Treasury Department.

Washington, DC—Secretary Henry M. Paulson, Jr. made the following comment today on news stories about “contingency planning” at Treasury:

“Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission.

“We appreciate Congress’ important efforts to complete legislation that will help promote confidence in these companies. We are maintaining a dialogue with regulators and with the companies. OFHEO will continue to work with the companies as they take the steps necessary to allow them to continue to perform their important public mission.”

The market is not going to like this statement. The purpose of issuing these emergency statements is to calm the markets. "Supporting Fannie Mae and Freddie Mac in their current form" is not a calming thought. Paulson is an idiot.

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