TIMELINE - Events leading to the Fannie and Freddie rescue

(Reuters) - Rarely have opposing political forces in Washington been so quick to come to agreement on a response to a crisis as they have in the past 13 days to prop up Fannie Mae and Freddie Mac.

Earlier this week, the U.S. House of Representatives passed its version of legislation that provides vital backstops for the two mortgage finance companies, a little over two weeks after a panic erupted on Wall Street over whether they might fail.

On Saturday, the Senate ratified that same legislation and sent it to President George W. Bush for signature. The White House has already said that it approves the legislation.

Below is a recap of the events leading to Saturday's vote in the Senate.

Monday, July 7

A Lehman Brothers research report suggests proposed accounting rule changes might leave Fannie Mae and Freddie Mac grossly undercapitalized. While seeing such an outcome as unlikely, the report hypothesizes the two might need as much as $75 billion (37 billion pounds) in new capital between them.

Panicked stockholders dump Fannie and Freddie shares, sending them to 16-year lows. Fannie tumbles more than 16 percent, and Freddie loses nearly 18 percent of its value.

Tuesday, July 8

Fannie's and Freddie's regulator, the Office of Federal Housing Enterprise Oversight, says it is misleading to suggest they are undercapitalized and that neither would need such a dramatic capital infusion which would severely dilute the value of existing shares.