Drag on the U.S. economy, "two rooms" or taken over by the government soon.

A major U.S. financial magazine <P> 18 disclosed, the U.S. government may soon approach through the issuance of preferred stock, the two troubled U.S. mortgage finance giants Fannie Mae and Freddie Mac funding, because the two companies is expected to .may be difficult to obtain adequate financing deal with growing credit losses. .Investors worried that the Government planned injection may weaken the rights of ordinary shareholders, the "two rooms" average daily stock price plunged more than 20% of 18 to 20 year lows. .</ P> <P> media quoted anonymous Bush administration sources as saying the Bush administration is expected to Fannie Mae and Freddie Mac may be difficult to raise sufficient capital to deal with subprime losses, for which the Ministry of Finance will use taxpayers money to their .recapitalize. .It is reported that the Government may issue preferred way to its injection, this stock has dividend and liquidation of assets when the priority, investors fear that this will lead to the "two rooms" damage to the interests of ordinary shareholders. .</ P> <P> The news triggered the day Fannie Mae and Freddie Mac shares fell to close, Fannie Mae shares nosedive 22%, to close at $ 6.15 for the lowest close since 1989; Freddie Mac .then slumped 25%, to close at $ 4.39 for the lowest close since 1991. .So far this year, the market value of Fannie Mae fallen by 85%, while Freddie has shrunk 87%. .</ P> <P> "two rooms" two U.S. government-backed mortgage finance in the body, is considered "too big to fail" enterprises. .The U.S. 12 trillion of home mortgages, 42% from the two institutions. .Moreover, the "two room" held or guaranteed mortgage bonds worth up to nearly 5 trillion, of which more than 300 million U.S. dollars for the U.S. financial institutions owned 1.5 million for foreign investors owned. .</ P> <P> last month, the "two rooms" of the stock price continued to fall, and the trade rumors the two companies facing financial crisis, the authorities were forced to take a capital injection from the commitment to limit short series of rescue measures. .On June 30, the Bush administration urgently enact legislation authorizing the U.S. Treasury increased to Fannie Mae and Freddie Mac line of credit, and if necessary, financed the acquisition of its shares. .</ P> <P> fact, since the "two room" after the legislation came into effect this month, the industry for the two companies may soon receive government funding to rising expectations, especially in the two companies have announced huge quarterly loss .after. .The second quarter, Fannie Mae and Freddie Mac loss of 2.3 billion U.S. dollars, respectively, and $ 8.21, the market is more than four times the expected loss. .</ P> <P> two rooms for injection may be the latest report, Barclays Bank economist Raja Yasha said the bank supports the Ministry of Finance calls for intervention, and that the situation in the third quarter .Last place. .Without government help, Freddie is almost impossible to raise sufficient capital. .With analysts that the "two rooms" also need to raise up to 150 billion U.S. dollars. .</ P> <P> However, a party of the "two rooms" and the U.S. Treasury were on the media coverage given to deny. .</ P>.