Fannie and Freddie Mac Mortage Lending Window Set Free

Federal regulators have eased the lenders’ capital surplus requirements, to inject some much-needed money into the mortgage market
Another stone fell into place in the federal government’s plan to build a path to credit market recovery. On Mar. 19, the Office of Federal Housing Enterprise Oversight, or OFHEO, said it was reducing the amount of capital [...]

Paulson Says He’ll `Do What It Takes’ to Calm Markets

Treasury Secretary Henry Paulson, defending the bailout of Bear Stearns Cos., said policy makers will do whatever is needed to prevent disruptions in financial markets from hurting the economy.
“The government is prepared to do what it takes to maintain the stability of our financial system,” Paulson told the “Fox News Sunday” television [...]

JPMorgan to buy Bear Stearns for $2 a share - Bankruptcy Stopped

JPMorgan Chase said Sunday it will acquire rival Bear Stearns in a deal valued at $236.2 million — or $2 a share — a stunning collapse for one of the world’s largest and most venerable investment banks.
The last-minute buyout was aimed at averting a Bear Stearns bankruptcy and a spreading crisis of [...]

Treasuries Rise; Sale of Bear Stearns Spurs Demand

Treasuries rose, driving yields on two-year notes down to 1.30 percent, as investors sought the relative safety of government debt after JPMorgan Chase & Co. agreed to bail out Bear Stearns Cos.
Traders began betting the Federal Reserve will cut its target for overnight loans by 1 percentage point tomorrow to keep losses [...]

Gold Advances to Record in Asia as U.S. Dollar Falls

Gold climbed to a record on increased demand for the metal as a haven after a Federal Reserve emergency rate cut sent the dollar falling.
The Fed lowered the discount rate to 3.25 percent from 3.5 percent, and extended the maximum term of discount-window loans to 90 days from 30 days. JPMorgan [...]

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