Breaking: Bernanke has told the heads of Fannie Mae and Freddie Mac that they will have access to the discount window, Reuters reports. The source on the story is a person close to the head of Fannie, it seems. Earlier today Senator Chris Dodd hinted at this possibility in his remarks supporting the government sponsored entities.
Possibly related: The Wall Street Journal's website has been down ever since this news broke. Attempts to load the front page delivered nothing but a message reading "service unavailable." Update (3:11): The Journal is back after several minutes of downtime.
Developing: The Fed is declining to comment. Some people are voicing skepticism. But its hard to argue against the idea that giving Fannie and Freddie access to the discount window is an elegant way to enhance their viability. If Lehman can have access, why not Fannie? Fire up the helicopters!
Developing: Here's a link to the Reuters story, which is chock-full of details. Yesterday Bernanke and the head of Freddie Mac spoke on the phone. It was in the afternoon. Bernanke said he intended the discount window to be open to both Fannie and Freddie. The source is someone "familiar with the phone conversation" but everyone is saying it is someone close to Freddie chief Richard Syron, if not Syron himself.
Posted by merkin capital partners , Jul 11, 2008 3:08PM
please put away the band-aids Ben. We're bleeding through them. "Capitalism without failure is like Christianity without hell." -WB
Posted by guest , Jul 11, 2008 3:08PM
Where's your siren light? It can't be "Breaking" unless you have the Drudge-style flashing siren light.
Posted by StMarc , Jul 11, 2008 3:15PM
Well, they might just as well file a change of address at Fannie and Freddie and have all their mail delivered to the Fed. Practically speaking, we now have three "national" banks.
On the upside, if you like owning can't-fail enterprises, now you too can own part of a Federal Bank. Up to now you had to be a qualifiying member of the Fed. Kind of a high bar to jump. You just know old Ben's going to be crying into his beer tonight about having to water his stock like that.
M
Posted by guest , Jul 11, 2008 3:24PM
Christopher Dodd spreading rumors. He should be arrested.
Posted by pdtrading , Jul 11, 2008 3:29PM
Ah, Helicopter Ben strikes again. Really, I am getting tired of this asshole. Apparently, the kitchen sink knows no bounds. Maybe we should start using Monopoly money. Or maybe we should all just move to Fantasy Land.
What's going to happen when the floor caves in? And it will. What then, Ben?
What a bunch of dickheads.
Posted by guest , Jul 11, 2008 3:32PM
@3:24 - I'd settle for that clown being replaced when he has to run the next time.
Otherwise happy to live in CT
Posted by guest , Jul 11, 2008 3:39PM
If Benji would stabilize the buck, the issue would go away.But Ben's studied things and knows what's what and says that the markets are wrong on the buck and inflation isn't a worry so Alfred E. Bernanke just keeps putting another finger in a dyke, and no, he's not goosing Barbara Mikulski.
Posted by merkin capital partners , Jul 11, 2008 3:52PM
/drudge reporting iran video was fake..."hey ahmed do we still have that missile video from '79?"
Posted by guest , Jul 11, 2008 4:09PM
Dear Friend,
I'm willing to bet that you've heard about The Fed, the world's BIGGEST Internet auction website.
And you've probably also heard some of the crazy stories about people making a fortune selling some very strange things to The Fed.
How strange? Check this out:
A piece of gum chewed by Britney Spears: SOLD -- $263
A plain, glazed donut: SOLD -- $5,100
"Shoeless" Joe Jackson's baseball bat: SOLD -- $577,610
10-year-old grilled cheese sandwich: SOLD -- $28,000
A billiard ball from Elvis Presley's pool table: SOLD -- $1,700
But as incredible as these examples seem, there's actually something even MORE amazing that happens at The Fed... and it's going on every single day!
I'm talking about "regular people" -- folks just like you -- who are getting filthy rich selling ordinary, everyday items... usually from the comfort of their own kitchen tables or spare bedrooms.
There are people getting rich selling wristwatches... others are making their fortunes selling picture frames... still others are raking in the cash by selling guitar strings. Women's shoes. Used DVDs. Portable camping showers.
The list goes on and on!
And I'm *not* talking about people making a few extra dollars either...
I'm talking about people who have "cornered" a particular niche market at The Fed -- and are making hundreds of thousands (and often millions) of dollars per year.
Posted by guest , Jul 11, 2008 4:19PM
While the Fed window may not exactly compare to a payday loan company, now that FNM and FRE are bellying up to the trough, how can they ever stop?
Posted by Slothrop , Jul 11, 2008 4:24PM
Fed denies it is giving window access to FNM/FRE
cursed Long-Buyers and their rumor-mongering
Posted by FUNdamental , Jul 11, 2008 4:32PM
@slothrop - is this the same slothrop of deadspin commenter acclaim?
Posted by Slothrop , Jul 11, 2008 4:36PM
nope. sorry