As a result of the subprime lending crisis, what happened to Fannie Mae and Freddie Mac?
A)They were privatized.
B)They were put into conservatorship.
C)They were sold to a foreign central bank.
D)The Fed seized their assets and auctioned them off.

Question

Quizplus · Accepted Answer

Fannie Mae and Freddie Mac were both put into conservatorship in 2008 as a result of the subprime lending crisis. This meant that the government took control of the companies and their operations in order to stabilize the housing market and prevent a complete collapse of the mortgage industry. They were not privatized or sold to a foreign central bank, and the Fed did not seize their assets and auction them off.

As a Result of the Subprime Lending Crisis, What Happened