OMAHA, Neb. (AP) - Most rural bank CEOs surveyed in eleven Midwestern and Plains states support a federal bailout of mortgage lenders Fannie Mae and Freddie Mac in the event of financial collapse.
But a new report released Thursday says only about 11 percent of the bankers supported such an intervention for investment banks, such as Bear Stearns.
The overall Rural Mainstreet Index was at a weak 41.4, up from June's 40.8, but down dramatically from 54.5 in July 2007. An index greater than 50 indicates a growing economy over the next three to six months.
The Bush administration and the Federal Reserve are putting together a support program for the two mortgage giants, which hold or guarantee more than $5 trillion of the nation's mortgages.
Posted in State-and-regional on Thursday, July 17, 2008 7:00 pm Updated: 2:28 pm.
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