France's Lagarde welcomes Fannie, Freddie bailout
PARIS (Reuters) - French Economy Minister Christine Lagarde has backed the U.S. bailout of Fannie Mae and Freddie Mac, saying it restored confidence in the financial markets.
"I think the plan is welcome," she told a student conference on Tuesday. "Both by its size and multi-dimensional nature, it has brought a very strong guarantee to a sector that was clearly under threat."
The U.S. government has committed up to $200 billion to support the two giant mortgage lenders, which together back about half the United States' $12 trillion in mortgages.
"This has clearly restored confidence amongst operators in the financial markets," Lagarde said.
(Reporting by Marc Joanny, editing by Will Waterman)
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