Federal Home Loan Banks May Buy $150 Billion of Bonds |
| Bloomberg - Mar 24, 2008 |
Federal Home Loan Banks were freed to increase their purchase of mortgage-backed bonds by about $150 billion as part of a government effort to pump money back into a market that slumped as the housing crisis deepened.
Directors of the Federal Housing Finance Board, the banks' regulator, approved the temporary increase today, according to an e-mailed statement. The purchases will be restricted to securities guaranteed by Fannie Mae and Freddie Mac, the board said.
``It's an opportunity for the Federal Home Loan Banks to supply more liquidity to the secondary markets,'' said John von Seggern, president of the Council of Federal Home Loan Banks which represents the banks. ``I think that's a good thing and the market needs to get that liquidity as soon as possible.''
Read Full Article from Bloomberg
- Posted: 2008-03-24 08:58:36
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