Obama's Xmas Present To Fannie And Freddie

The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress.

The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama's current term.

From The Washington Post, "U.S. promises unlimited financial assistance to Fannie Mae, Freddie Mac" by Zachary A. Goldfarb.