Bernanke Put: Fannie and Freddie Get Access To Fed's Discount Window

Author:
Updated:
Original:

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.

Related