Fannie, Freddie could need US$126b in crisis, test shows

New York

FANNIE Mae and Freddie Mac could need as much as US$125.8 billion in bailout money from taxpayers in a severe economic downturn, according to stress test results released on Monday by their regulator.

The Federal Housing Finance Agency (FHFA) said that the government-controlled companies, which back nearly half of new mortgages, would need at least US$49.2 billion.