Fannie Mae, Freddie Mac Are Sound; Panic Unwarranted, Dodd Says
By Romaine Bostick
July 11 (Bloomberg) -- Fannie Mae and Freddie Mac are sound, have several options for capital and liquidity, and the ``facts don't warrant'' the negative reaction by investors, Senate Banking Committee Chairman Christopher Dodd said.
``There is sort of a panic going on, and that is not what ought to be,'' Dodd, a Democrat from Connecticut, said at a press conference in Washington today. ``Fannie Mae and Freddie Mac were never bottom feeders in the residential mortgage market.''
Dodd said options for the two largest U.S. mortgage-finance companies include using the Federal Reserve's discount window. He said the Fed and the Treasury Department are considering a ``number of options.''