Released on: July 15, 2008, 12:23 am

Press Release Author: Gracy

Industry: Financial

Press Release Summary: Federal National Mortgage Association and the Federal Home
Mortgage Corporation are likely to be rescued by the US government amidst
speculation that the collapse of the two would hit the UK markets.

Press Release Body: London (Shakespearefinance) July 14, 2008: The US government is
likely to rescue the Federal National Mortgage Association and the Federal Home
Mortgage Corporation, two of the United States\' biggest mortgage companies. This was
witnessed in the emergency talks held this weekend.

This race against time attempt by the US government was made prior to the opening of
the US financial markets on 14th July. This is because both these mortgage companies
own or guarantee half of the country\'s $12 trillion of mortgages.

On Friday, regulators stepped in with a £4bn rescue for the fifth US Bank to
collapse in 2008, IndyMac Bancorp, due to the prevailing mortgage crisis and the 3rd
largest banking failure in the US history. The impact was seen in the UK and
European markets with shockwaves witnessed in the markets along with a rise in the
mortgage costs followed by a tightening of the mortgage lending criteria.

US Treasury Secretary Hank Paulson admitted that the fallout of these two mortgage
sector giants is attributed to defaulting homeowners on repayments. He also said
that the US government will be pumping cash into them through mortgage bonds. Justin
Urquhart Stewart, an analyst with the Seven Investment Management, said that the
latest debacles in the US market will lead to a double whammy in the UK market.

For additional information on the news that is the subject of this release (or for a
sample, copy or demo), contact Webmaster or visit
http://www.shakespearefinance.co.uk

Web Site: http://www.shakespearefinance.co.uk

Contact Details: United Kingdom