GSE debt doesn’t carry full faith of government: Treasury

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GSE debt does not carry ‘full faith and credit’ of governments but close- Treasury’s Kashkari

Nov 14 (Reuters) – Debt issued by major U.S. mortgage finance sources Fannie Mae and Freddie Mac do not carry the full faith and credit backing of the U.S. Treasury but it’s “darned close”, a senior Treasury official said on Friday.

“Fannie and Freddie are not full faith and credit. We have provided very strong implicit support … But they are not the same thing as full faith and credit. It’s darned close, but it’s not quite full faith and credit,” U.S. Interim Assistant Secretary for Financial Stability, Neel Kashkari told a Congressional panel.