US seeks to support Fannie & Freddie 'in current form'

WASHINGTON: Treasury Secretary Henry Paulson said on Friday the US government is aiming to support ailing mortgage giants Fannie Mae and Freddie Mac "in their current form as they carry out their important mission."

Paulson's comments came as shares of the two government-chartered, stockholder-owned companies went into freefall on heightened concerns the trillion-dollar firms may face insolvency or a government takeover.

In response to news reports on contigency planning by the government, Paulson stated, "Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission."

He added that legislation under consideration by Congress "will help promote confidence in these companies."