Are Freddie and Fannie Insolvent?

Financial news outlet CNBC was reporting early Thursday that Freddie Mac and Fannie Mae, the two corporations around which much of housing recovery has been structured, may be technically insolvent. The claim came from William Poole, former president of the St. Louis Federal Reserve. Poole told Bloomberg News that Congress should recognize that the two are technically insolvent and the odds are that the U.S. may have to bail them out. Others disagreed, saying that there would have to be sudden losses of $40 billion between the two to trigger insolvency. Read More Now