The Bush administration on Friday attempted to quash suggestions that the US government might have to nationalize Freddie Macand Fannie Mae, the giant mortgage companies that have unsettled the financial markets.

Hank Paulson, Treasury secretary, said: “Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission,” signaling that the Bush administration was not contemplating a rescue takeover of the two groups and wanted public shareholders to continue owning them reports the Financial Times.

Describing Freddie and Fannie as “very important institutions”, President George W. Bush said Mr. Paulson and Ben Bernanke, head of the Federal Reserve, would be “working this issue very hard”.

Chris Dodd, Democratic chairman of the Senate banking committee, on Friday also said the Fed and the Treasury were considering opening the Fed’s discount window to Fannie and Freddie.

Read it here: Paulson stands by Fannie and Freddie