Fed, US Treasury Dept to save Fannie Mae, Freddie Mac

For the last three days there's been talk of a liquidity crisis at America’s biggest mortgage financiers Fannie Mae and Freddie Mac. While the companies say they have adequate money, the Fed and the Treasury Department say they won't let the two fail.

Henry Paulson, US Treasury Secretary, “Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder companies. Their support for the housing market is particularly important as we work through the current housing correction.”