Bankers survey shows support for mortgage bailout

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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.

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