The Federal Housing Finance Agency reports that the two
government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac might
together require government assistance of as much as $157.3 billion in the
event of an extremely severe economic downturn.
The figure comes as a result of a stress test mandated by the Dodd-Frank
Wall Street Reform and Consumer Protection Act for certain financial institutions
with more than $10 billion in assets, criteria which includes the two companies
which are in Federal conservatorship.
test, an annual requirement, is designed to determine whether an institution can
absorb losses as a result of hypothetical adverse economic conditions.