The Treasury Department is close to completing a plan to help shore up mortgage giants Fannie Mae and Freddie Mac, according to people familiar with the matter.
The plan is expected to involve a creative use of Treasury's authority to intervene in the two companies, which it won earlier this year. One option under serious consideration would be to put the companies into the conservatorship of their regulator, the Federal Housing Finance Agency, said two people familiar with the matter. That would amount to a government takeover.
Note the use of the phrase "...a creative use of Treasury's authority to intervene in the two companies."
And remember: it's your collective checkbooks which are going to wind up bailing out these two private entities.