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.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.