He saw an ad in the newspaper about buying defaulted loans from the federal government.

But it is worth noting that the bankers making those statements are not known to be buying loans in the market.

Similarly, his resolve to avoid bailing out the banks by buying bad loans from them at book value has grown.

"While others concentrated on marketing and raising money, I put together the process under which we buy loans."

For the first time, banks are free to buy savings and loans, accelerating a trend toward national banking.

It will also buy certain loans and other assets for $36.9 million.

It stopped buying loans from outside mortgage brokers - known in the trade as "wholesale lending."

Currently, Fannie will buy loans of up to $729,750.

He has also been named to head an organization the government plans to create to buy bad loans from banks.

Companies that buy such loans are not new.