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(China Daily)
Updated: 2008-09-12 07:32
China, which holds a fifth of its currency reserves in Fannie Mae and Freddie Mac debt, may cut the portion held in US dollars, according to China International Capital Corp (CICC), one of the nation’s biggest investment banks.
The US government this week seized control of the two mortgage-finance companies, which account for [...]

Before you can collect income on a loan, you have to first give the borrower the money.
When a loan defaults, you have lost not only the income but the loaned capital. Please understand, banks were not dependent on the income stream from their existing loans to grant new loans. That style of operating went out [...]