Legislative Background
Recent Action on the Credit Crisis
The U.S. Government has taken action several times this year to try to contain damages resulting from slowdowns in the housing and financial markets. In February, the President proposed and Congress adopted a $150 billion economic stimulus package that included a tax rebate for individuals. In late summer, the government began to intervene on a case-by-case basis to help failing financial institutions. On September 7, government-sponsored enterprises Fannie Mae and Freddie Mac were placed in conservatorship to ensure their continued solvency. A week later, the Federal Reserve Board agreed to provide a $85 billion bailout that would give the government…
