Fannie Mae, Freddie Mac to Be Kept Off Budget,

White House Says

By Brian Faler - Sep 12, 2008
Sept. 12 (Bloomberg) -- The Bush administration said it will not incorporate Fannie
Mae and Freddie Mac into the federal budget lea!ing the mortgage giants" assets and
liabilities off the go!ernment"s balance sheet.
#hite $ouse Budget %irector &im 'ussle said toda( that the companies which were
ta)en o!er last wee) b( the Treasur( %epartment will be left out of the go!ernment"s
budget and financial statements in part because of the **temporar( nature of the
arrangement.""
The Treasur( %epartment has committed to pro!iding as much as +2,, billion in e-uit(
and credit through ne.t (ear in order to pre!ent the companies which own or
guarantee +/ trillion worth of mortgages from collapsing.
The decision means the costs of the go!ernment bailout will affect the federal deficit
and debt while the companies" business operations will remain off the boo)s. That
contradicts the planning of the nonpartisan 0ongressional Budget 1ffice. 0B1
%irector 2eter 1rs3ag contending the budget ought to full( reflect go!ernment
operations said Sept. 4 that his agenc( will begin including these assets and liabilities
as part of its budget estimates.
To contact the reporter on this stor(5 Brian Faler in #ashington
at bfaler6bloomberg.net.
To contact the editor responsible for this stor(5 Michael Fors(the in
#ashington mfors(the6bloomberg.net