Freddie, Treasury met to discuss aid - sources

Wed Aug 20, 2008 6:00pm EDT
 
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WASHINGTON (Reuters) - Officials from the U.S. Treasury and Freddie Mac (FRE.N) met on Wednesday to talk about the company's health and how it can best weather the current economic woes in light of mounting credit losses, sources familiar with the meeting said.

The meeting between staff at the mortgage-finance company and Treasury was one of several that have taken place since mid-July when the government outlined a plan to back up the company and its sibling agency, Fannie Mae (FNM.N), as investors fret about the health of the two firms.

The meeting took place as Fannie Mae and Freddie Mac shares plunged on Wednesday amid speculation that some sort of government intervention would be needed to backstop the nation's two largest sources of mortgage finance.

(Reporting by Patrick Rucker; Editing by Chizu Nomiyama)

 
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