John McCain: Fannie Mae, Freddie Mac needs to be saved

They are the two biggest providers for finance in the U.S., Fannie Mae and Freddie Mac, have fell to their lowest level in 17 years, this follows a recent statement from the Federal Reserve president who said that the companies need to be rescued by the government.

Freddie Mac has lost 34 percent while Fannie Mac tumbled by almost 24 percent at the New York Stock Exchange. These results mean that it is looking more likely that the U.S. will have to bail the two banks out.

Louis Federal Reserve President William Poole has said that in the first quarter, Freddie Mac owned $5.2 billion more than their assets are worth.

Fannie Mae had assets of just $12.2 billion, this was a drop of 66 percent, however looking at data which has been provided by Louis Federal Reserve, and it shows that Fannie could be negative by next quarter.

Senator John McCain has said that the federal government can’t allow these two banks to fail; he has said that they are vital to Americans’ ability to own their own homes.

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