8/7/2008

The rescue plan for Fannie Mae and Freddie Mac will likely cost the U.S. $30 billion, according to Bill Gross, co-chief investment officer at Pacific Investment Management Co. Under the plan, the Treasury Department will buy preferred shares of the mortgage giant. "By the end of the third quarter, the preferred stock in Fannie and Freddie will be issued. The Treasury will have bought it. We'll be on our way toward a joint Treasury-agency combination," Gross said.

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