The Treasury Department announced that it is seizing the U.S.'s top mortgage lenders Fannie Mae and Freddie Mac on September 7, 2008.FOXNews: Government Takes Over Fannie Mae, Freddie Mac (September 7, 2008)

The Treasury Department reportedly finalized its plan to temporarily take over the two companies, the largest mortgage financiers in the U.S, in early August 2008.The Wall Street Journal: U.S. Near Deal on Fannie, Freddie (September 6, 2008) The plan, which would place the companies under the conservatorship of the federal government, is intended to minimize risk to the U.S. housing market.Agence France-Presse: US could take over mortgage giants... (July 11, 2008)

The companies' stock value plummeted to record lows on July 11, 2008, after the New York Times first reported the bailout plan.The New York Times: Fannie and Freddie Shares Slide, Dragging Down Stocks (July 12, 2008)

U.S. stocks rose on September 8, 2008 after the bailout.The Edge Daily: Wall Street soars on Fannie, Freddie bailout (September 9, 2008)

Fannie Mae and Freddie Mac borrow money to buy mortgages from lenders. They do this under a mandate from the federal government to reduce the risk of lending for traditional banks and the cost of borrowing for homeowners.Reuters: Paulson Shoots Down Fannie, Freddie Bailout (July 11, 2008)

Together, Fannie Mae and Freddie Mac own or cover $5 trillion in debt, roughly one half of the entire mortgage debt in the United States. If they were unable to continue buying mortgages from lenders, as many analysts fear, it would become nearly impossible for people to obtain home loans, bringing the already slowed housing market to a complete standstill.Reuters: Paulson Shoots Down Fannie, Freddie Bailout (July 11, 2008)

Under such a deal, the federal government would assume a guardianship role over the companies. Tax payers could become responsible for supporting the companies' losses.Agence France-Presse: US could take over mortgage giants... (July 11, 2008)

• El Paso Times: Bailout doesn't curb all credit woes - El Paso Times (September 9, 2008)

• CNN Money: U.S. seizes Fannie and Freddie (September 7, 2008)

• FOXNews.com: Congressman Confirms Fed Rescue... (September 6, 2008)

• The Wall Street Journal: U.S. Near Deal on Fannie, Freddie (September 6, 2008)

• USA Today: Reports: Fannie Mae and Freddie Mac to be seized (September 5, 2008)

• Business Week: Freddie, Fannie Shares Sink on Bailout Concerns (July 11, 2008)

• The New York Times: Putting Their Houses in Order (July 12, 2008)

• Financial Times Video: Fannie Mae and Freddie Mac (Time: 2:07)

• Agence France-Presse: US could take over mortgage giants... (July 11, 2008)

• Yahoo! Finance: U.S. Weighs Takeover of Two Mortgage Giants (July 11, 2008)

• The New York Times: Fannie and Freddie Shares Slide... (July 12, 2008)

• NBC News Video: Uncertainty Reigns (Time: 1:36)

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