Paulson `Very Optimistic' on Freddie, Fannie Rescue (Update1)
By John Brinsley
July 20 (Bloomberg) -- Treasury Secretary Henry Paulson predicted the Bush administration will prevail in its effort to convince Congress to pass legislation that would allow the government to rescue Fannie Mae and Freddie Mac.
``I'm very optimistic that we're going to get what we need from Congress,'' Paulson said on the CBS News ``Face the Nation'' program. ``Congress understands how important these institutions are.''
Paulson is pushing Congress to authorize the Treasury to purchase equity stakes in Fannie Mae and Freddie Mac, which account for about half of the $12 trillion mortgage market, and expand government-backed credit lines to them. He also said he wants the legislation to include a measure that gives ``real teeth'' to the companies' regulator, the Office of Federal Housing Enterprise Oversight.
``We're very close to getting reform,'' he said in a separate interview on CNN's ``Late Edition'' program. ``These are very important organizations -- they have a very important role to play -- and we need to make sure that they have access to adequate capital to get through this period.''
The economy is in a ``challenging time'' and probably will have ``slow growth'' for ``months'' as higher oil prices prolong the slowdown, Paulson said on CBS. The banking system is ``sound'' and regulators are being ``vigilant,'' though some banks are starting to struggle, he said. http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=aGn4Ioxg8g9s
Oil up over $1 on Iran talks, Mexico Gulf storm Oil rose towards $130 a barrel on Monday after its biggest one-week slide on record as inconclusive talks between Iran and world powers over Tehran's disputed nuclear programme dimmed prospects of ending the row. http://news.yahoo.com/s/nm/20080721/bs_nm/markets_oil_dc_4
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