Bank Threatens Forclosure on Freddie Mac

Washington D.C. (Reuters) - Despite an impassioned plea from its President & CEO, the Federal National Mortgage Association, commonly known as Fannie Mae, is being driven into foreclosure by it's primary shareholder according to reports.

Henry F. Potter said that he had made had decision “to promote the availability of home mortgage credit during a period of stress in financial markets.”

CEO George F. Bailey was highly critical of the move, which he characterized as an attempt of Potter to gain complete control of Fannie Mae.

"If Potter gets hold of Fannie Mae there'll never be another decent house built in this town. He's already got charge of the bank. He's got the bus line. He's got the department stores. And now he's after us. Why? Well, it's very simple. Because we're cutting in on his business, that's why. And because he wants to keep you living in his slums and paying the kind of rent he decides."

Bailey's words did little to sooth worried investors, who demanded to know where billions of dollars of investment have gone to over the last 10 years.

"You're thinking of this place all wrong. As if I had the money back in a safe. The money's not here. Your money's in Joe's house...right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others. Why, you're lending them the money to build, and then, they're going to pay it back to you as best they can."

Bailey has already made a call to the Federal Reserve alleging that Mr. Bailey has misappropriated funds.

George Bailey became CEO of the multi-billion dollar government backed corporation at the death of his father peter Bailey. Even though the younger Bailey was determined to "see the world", personal responsibility lead him to take over Fannie Mae. Mr. Potter has tried on several occasions to gain controlling interest in the firm.

After his brief press conference, George Bailey was unreachable for comment.

Minor investors in Fannie Mae have already begun to raise the nearly $5.4 Billion necessary to bail out Fannie Mae, mostly through donations of $5 or less.