Responding to speculation that the government will soon announce a plan to take control of mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE), Democratic presidential candidate Barack Obama said Saturday that Washington has for too long "ignored the warning signs in the housing and financial markets."
Obama said that he believed that any action must be aimed at strengthening the economy and helping homeowners an not "on the whims of lobbyists and special interests worried about their bonuses and hourly fees." He also said that any plan must "not bail out the shareholders and management of Fannie Mae and Freddie Mac."
Lastly, Obama said that any action must clarify "true public and private status of our housing policies."
The government is expected to announce a plan to take control of mortgage giants Freddie Mac and Fannie Mae. The plan could be announced as early as this weekend.
Various media reports indicated Saturday that the U.S. Treasury Department is negotiating a plan to take control of the companies, which have been under continuous pressures since the subprime mortgage crisis began playing havoc on the housing and credit markets last year. Precise terms of the bailout have not become public.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.