* WASHINGTON (11/17/08)--The Federal Deposit Insurance Corp. (FDIC) Thursday provided details on a plan
intended to prevent 1.5 million foreclosures during the next year. The $24.4 billion-proposal will offer incentives to companies that agree to reduce monthly mortgage payments (The Washington Post
Nov. 14) ... * WASHINGTON (11/17/08)--Freddie Mac is asking for $13.8 billion in government after posting a quarterly loss (Associated Press
Nov. 14). The government-sponsored enterprise posted a loss of $25.3 billion Friday for the third quarter. Last year, Freddie posted a loss of $1.2 billion for the third quarter. This year’s loss is due to $9.1 billion in write-downs on mortgage securities, $6 billion in credit losses and a $14.3 billion charge to reduce tax asset value. Tightening credit, increasing unemployment rates and poor economic conditions have triggered higher numbers of delinquent loans, Freddie said. Freddie’s loan delinquency rate rose to 1.22% from 0.9% in June ... * WASHINGTON (11/17/08)--During a speech celebrating the 10th anniversary of the euro in Frankfurt, Germany, Federal Reserve Board Chairman Ben Bernanke encouraged central banks to coordinate on policy. “The merits of coordinated monetary policies have been discussed by policymakers and academics for decades, but in practice, such coordination has been quite rare,” he said. Efforts of central banks worldwide have contributed to improvements in the credit market, but the continuing volatility of markets and recent indicators of economic performance confirm that challenges remain, he said. Policymakers will remain in close contact and stand ready to take additional steps if needed. “We are especially aware of the importance of having close working relationships with our central bank colleagues around the world,” Bernanke concluded ...