PricewaterhouseCoopers also audits the Federal Home Loan Banks and AIG.

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But the bank is potentially under reserved in the event Fannie Mae ( NYSE:FNM), Freddie Mac (NYSE:FRE), and the Federal Home Loan Banks prevail in forcing significant mortgage loan repurchases.

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Today's announcement by the Fed that it will purchase direct debt obligations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and also mortgage backed securities guaranteed by Fannie, Freddie and Ginnie Mae, underscores our support for the housing market.

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PwC would also know how widespread the practice was amongst some of the systemically important financial institutions, since they also audit Bank of America, JP Morgan Chase, and AIG, as well as the Federal Home Loan Banks and Freddie Mac.

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Included in the bill are provisions to overhaul the regulation of Freddie Mac, Fannie Mae and the Federal Home Loan Banks, as well as provisions to increase loan limits to veterans, increase various tax credits to home buyers, and increase the issuance of tax-exempt bonds to refinance subprime loans.

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They include the Depository Trust Co, which facilitates payment transfers among major banks, as well as several Federal Home Loan Banks and Farm Credit System Banks.

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