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Fed says discount window not discussed with GSEs
WASHINGTON (Reuters) - The Federal Reserve said on Friday that it had not discussed access to its emergency discount window with government-sponsored mortgage finance companies Fannie Mae and Freddie Mac.
"Federal Reserve officials are following the situation closely. However, there has been no discussion with the GSEs about access to the discount window," said Fed spokeswoman Michelle Smith.
"I am not prepared to discuss the range of options or alternatives being considered," she said, responding to a story published by Reuters earlier on Friday.
The article, sourced to someone familiar with a telephone conversation on Thursday between Fed Chairman Ben Bernanke and Freddie Mac chief Richard Syron, stated that Bernanke had told Syron the GSEs could access capital through the discount window.
Fannie Mae and Freddie Mac shares have tumbled on fears they might run short of capital, spawning speculation of a government bailout. They own or guarantee $5 trillion of debt, almost half of all U.S. mortgages.
(Reporting by Alister Bull; Editing by Gary Crosse)
