Friday, August 22, 2008

Buffett: Reasonable Chance Fannie and Freddie Will Be Wiped Out

On CNBC's Squawk Box Warren Buffet said that there's a "reasonable chance" that Fannie and Freddie's equity will be wiped out. They keep existing because they're backed by the government, and the government should continue to support them, expect for the equity portion. He notes that Berkshire had been a big holder of the GSEs before selling the entire stake around 2000 and 2001.

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