Fannie, Freddie told to buy $40 bln of mortgages a month - report - MarketWatch

Fannie, Freddie told to buy $40 bln of mortgages a month - report - MarketWatch: "SAN FRANCISCO (MarketWatch) -- Federal regulators have ordered Fannie Mae and Freddie Mac to start buying $40 billion of troubled mortgage bonds each month as the U.S. government tries to revive the economy, according to a published report.

A story from Bloomberg News on Saturday reported Fannie (FNM - FRE) began telling bond traders last week that each company needs to buy $20 billion a month in mostly subprime, Alt-A and non-performing prime mortgage securities, Bloomberg said, citing three unidentified people familiar with the situation.
The purchases would be separate from the U.S. Treasury's $700 billion bailout plan, which was signed into law earlier this month, Bloomberg noted."