Mortgage Giants Crisis

Freddie Mac Corporate Office are seen Sunday, July 13, 2008 in McLean, Va. The U.S. Treasury and the Federal Reserve are announcing steps to shore up mortgage giants Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac either hold or back $5.3 trillion of mortgage debt. That's about half the outstanding mortgages in the United States. (AP Photo/Pablo Martinez Monsivais)
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It's a signal from the government today, that it's ready to do what's necessary to help mortgage giants Fannie Mae and Freddie Mac.

The Federal Reserve says it's giving its New York Bank the power to lend to the companies, if necessary, and the treasury is looking for an okay from congress to expand its credit to them. The most powerful people in Washington are making it clear they'll support efforts to shore up the mortgage giants.

The Senate's Majority Leader and the House Republican Leader have used almost identical language to say they “stand ready” to work with the administration to calm fears about the mortgage markets. The White House says President Bush has told treasury to ``immediately work with congress'' to get the plan passed.

John McCain and Barack Obama say they support the stabilization efforts.