WASHINGTON May 11 The regulator for Fannie Mae
and Freddie Mac said on Thursday that he was willing to retain
company earnings to stabilize the mortgage finance enterprises,
Melvin Watt, director of the U.S. Federal Housing Finance
Agency (FHFA), said he could order Fannie and Freddie to retain
future profits as a way to shore up the companies' accounts.
"We cannot risk the loss of investor confidence," he told a
senate panel. "FHFA's actions would be taken solely to avoid a
draw during conservatorship."
(Reporting By Patrick Rucker; Editing by Chris Reese)