After whispers of it happening, this morning it became official.
http://money.cnn.com/2008/09/07/news/companies/fannie_freddie/index.htm?postversion=2008090711
The real meat of the article is at the end :
So we're bailing out both institutions by proxy. Note this is the second time for J.P. Morgan, first being the Bears Stern "buyout". If you have money in J.P. Morgan, I'd move it now. If you have a Chase credit card, move your balance now or at least have a plan in place for a full balance transfer or pay out.
http://money.cnn.com/2008/09/07/news/companies/fannie_freddie/index.htm?postversion=2008090711
The real meat of the article is at the end :
Some of the nation's largest financial institutions including JPMorgan Chase (JPM, Fortune 500) and Sovereign Bancorp (SOV, Fortune 500) own a big chunk of the estimated $36 billion in preferred shares of Fannie and Freddie, which are at risk of being wiped out should Fannie and Freddie do end up getting a cash infusion from the Treasury Department.
So we're bailing out both institutions by proxy. Note this is the second time for J.P. Morgan, first being the Bears Stern "buyout". If you have money in J.P. Morgan, I'd move it now. If you have a Chase credit card, move your balance now or at least have a plan in place for a full balance transfer or pay out.