*DJ Fed's Bernanke Signals He Favors Privatizing Fannie, Freddie

(MORE TO FOLLOW) Dow Jones Newswires

February 25, 2010 10:46 ET (15:46 GMT)

DJ Fed's Bernanke Signals He Favors Privatizing Fannie, Freddie

   By Luca Di Leo and Tom Barkley
   OF DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)--U.S. Federal Reserve Chairman Ben Bernanke indicated Thursday that he would favor privatizing mortgage companies Fannie Mae (FNM) and Freddie Mac (FRE).

In testimony before the Senate, Bernanke said the mortgage companies' current status of being neither private nor public needs to be clarified. He said that Fannie and Freddie were in "no man's land" and that they were "neither fish nor fowl."

The Fed chief said they should either be acknowledged as government utilities or be privatized, adding the latter option would be an "interesting direction to go".

-By Luca Di Leo, Dow Jones Newswires; 202 862 6682; luca.dileo@dowjones.com

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(END) Dow Jones Newswires

February 25, 2010 11:09 ET (16:09 GMT)

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