1. Why did the federal government take over Fannie Mae and Freddie Mac?
to help keep the two companies from facing the same fate as Bear Stearns
2. Secretary Paulson decided not to garuntee a government loan for Lehman Brothers as he had for Bear Stearns with the JPMorgan takeeover. What happened as a result of that decision? Lehman Brothers went bankrupt. as a result of that the market began to crash
3. Why did the government give AIG a loan of $85 billion after refusing to loan money for the Lehman Brothers aquisition? AIG was the largest insurance company in America. Letting AIG fall would bring down the economy as a whole.
4. What is capital injection? financial support provided by the government
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