Fannie Mae, Freddie Mac, is tantamount to bankruptcy called on Washington to strengthen financial regulation.

Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson went to Congress 10 days to give evidence that financial market turmoil continues, while calling for legislation to reform the U.S. financial management system. .Paulson echoed a recent day two mortgage finance institutions Fannie Mae and Freddie Mac stock impacts of water plug, saying the government will ensure adequate funding, but the two agencies continue to drop. .<P Style=MARGIN: 0px> <P style=MARGIN: 0px> </ P> Comprehensive reports, extends from the last year since the U.S. subprime mortgage crisis has caused a global economic shocks, Bernanke and Paulson to the House Financial Services 10 .Committee hearing, made the call management system reform of the United States. .</ P> <P align=center> reform the U.S. financial management system </ P> <P> Bernanke told lawmakers that the Fed and the Securities and Exchange Commission are working together to strengthen financial supervision, but it can only deal with short-term situation, " .the long term, legislation may be necessary for the investment banks and other large securities dealers prudential supervision, to provide a more robust structure. "</ P> <P> He also said that, in view of the occurrence of cases of Bear Stearns, in his view .Congress should consider the need for new methods to ensure the verge of a major collapse of the normal liquidation of securities firms, and to determine when to use these methods to a more formal process. .</ P> <P> March this year, the Federal Reserve to avoid collapse of Bear Brissenden impact on the overall economy, JP Morgan Chase agreed to buy Bear Stearns for the case of financing transactions, and implemented measures will rarely extended the discount window to large investment banks, these .action has caused the Government should provide relief for private companies questioned. .</ P> <P> U.S. Treasury already developing a large-scale restructuring of financial regulators plan, in addition to related reorganization, also proposes to expand the Federal role in the overall protection given to the implementation of the wider financial system stability .authority. .</ P> <P> Paulson said on that day, the relevant work is not easy, you need to start immediately. .Paulson pointed out very clearly if the closure of some institutions, may cause systemic effects. .But he also stressed the importance of market discipline; and market discipline to effectively control risks, financial institutions must be allowed to fail. .</ P> <P> his view, should strengthen the financial infrastructure, and expand the regulatory authority, so that the financial system can withstand the failure of large financial companies. .</ P> <P align=center> Fannie Mae, Freddie Mac, is tantamount to bankruptcy </ P> <P> Paulson to clarify the outside world and trying to set up two government-sponsored mortgage companies Freddie Mac and Fannie Mae's .doubt that the two companies are overcoming challenging times. .Informed sources, the Bush administration has been discussing the problem of strain once the strategy, and the Reserve Bank of St. Louis, long-Poole believes that the recent loss of the two mortgage agencies have been equivalent to cash flow problems, should the government bail out the chances. .</ P> <P> Paulson said the two companies in the U.S. housing market downturn, play an important supporting role, and the future will continue to play this important role. .Paulson said the two companies the federal housing enterprise regulatory inspectorate has been emphasized earlier in the week the two companies currently capitalized. .</ P> <P> the current market is very worried about Freddie Mac and Fannie Mae, the financial position of the two major U.S. mortgage institutions, Fannie Mae July 9 sale $ 3,000,000,000 for the biennium bonds, investors have been worried that this American .the largest residential lenders, capital is insufficient to meet U.S. housing recession, the U.S. property market is the worst situation since the Great Depression. .Fannie Mae's credit default swaps show traders are the AAA bond rating, a low level 5 assessment not treated. .Fannie Mae shares plunged 13% was recorded the lowest closing price in 14 years. .</ P> <P> It is reported that President Bush administration is studying the recent collapse in share prices continued to Fannie Mae and Freddie Mac, once the corresponding problem. .Reported and that the discussions for several months, the Treasury and other financial regulators as part of the normal corresponding plan, however, the two quasi-government agency with the financial situation has recently worsened, and the discussion became more pressing. .</ P>.