Financial Times FT.com

Fannie and Freddie crisis eases

By James Politi in Washington and Saskia Scholtes in New York

Published: August 21 2008 19:01 | Last updated: August 21 2008 19:01

The crisis surrounding Fannie Mae and Freddie Mac eased on Thursday as both the equity and debt of the two US mortgage financiers rallied – although worries remained that a government bail-out would be necessary.

The more encouraging market movements came on the back of greater confidence that the agencies would be able to continue enjoying access to funding in the debt markets, which could stave off government intervention.

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