 |
|
Chairman of the Federal Reserve Ben
Bernanke reports his Monetary Policy Report before the U.S. Senate Banking
Committee on Capitol Hill in Washington, July 15, 2008. Restoring
financial market stability is a top priority for the U.S. Federal Reserve
as a weakening housing market, tighter credit and rising oil prices
threaten the economy, Bernanke said on Tuesday. (Xinhua
Photo)
Photo
Gallery>>> |
WASHINGTON, July 16 (Xinhua) -- The two troubled U.S. mortgage giants Fannie Mae and
Freddie Mac are in "no danger of failing," said Federal Reserve Chairman Ben
Bernanke on Wednesday.
The two mortgage giants, which hold or guarantee more
than 5 trillion dollars in mortgages, are adequately capitalized, Bernanke said
to the House Financial Services Committee.
"However, the weakness in market confidence, this is
having real effects as their stock prices fall, (and) it's difficult for them to
raise capital," said the central bank chief.
He noted that the best solution is to keep Fannie and
Freddie "in their current form" as opposed to having the government take them
over, adding it is also vital for Congress to boost regulatory oversight on the
two companies.
Bernanke also said the loss of confidence could
prompt higher rates on bonds of the government-sponsored, shareholder-owned
firms, and accordingly increase their borrowing costs.
"As I said yesterday, I think the housing market is
really the central element of this crisis," Bernanke said. "And anything we can
do to strengthen the housing market, to strengthen mortgage finance would be
beneficial."
Wall Street jumps on stronger
financials, falling oil
NEW YORK,
July 16 (Xinhua) -- Wall Street rebounded strongly Wednesday as the recovering
financial sector and continued drop in oil prices eased some of the increasing
inflation worries.
Crude oil prices retreated for a second day, giving the
stocks a big boost. Light, sweet crude for August delivery fell 4.14 U.S.
dollars to settle at 134.60 dollars a barrel on the New York Mercantile Exchange
after tumbling 6.44 dollars on Tuesday. Full story
SEC to limit naked shorting of Fannie,
Freddie, major brokers
NEW YORK,
July 15 (Xinhua) -- Christopher Cox, chairman of the Securities and Exchange
Commission (SEC), said Tuesday the regulator will try to limit so-called naked
shorting of shares in Fannie Mae, Freddie Mac and primary dealers including
Lehman Brothers, Merrill Lynch, Morgan Stanley and Goldman Sachs.
The SEC will issue an emergency order stating that all
short sales of shares in these companies will be subject to a "pre-borrow"
requirement, Cox explained. Full story
Wall Street soars as gov't plans to
rescue Fannie and Freddie
NEW
YORK, July 14 (Xinhua) -- Wall Street opened sharply higher after the U.S.
government unveiled a plan to aid mortgage financiers Fannie Mae and Freddie
Mac.
The Federal Reserve said in the plan announced Sunday it
would lend to the two companies "should such lending prove necessary." Henry
Paulson, Secretary of the Treasury, said the Treasury is asking Congress for
quick approval of a plan to expand its line of credit to the two companies and
to make an equity investment in them, if necessary. Full story
