Fannie and Freddie Mac Update

There is a story out this morning about Fannie & Freddie not needing an injection of capital from the US government, and that they have enough saved to weather the current problems. Wouldn’t that be nice? I imagine that government and finance officials have found out that these companies, and their financing, are so much more complicated than anyone ever imagined. The public and banks own huge numbers of shares, with the banks holding preferred stock. If the preferred stock’s value goes to 0, it would put many of these banks out of business. So news like this morning’s is welcome.