7 of 7
The Chinese and Japanese governments own billions of dollars in Fannie, Freddie debt.
The investors who backed the companies' expansion shoulder some of the blame too. Bondholders, including institutional investors and foreign central banks, bought billions of dollars of their debt in recent decades. Central banks in Japan and China held some $600 billion of U.S. agency paper as of June 2007, according to the latest Treasury data.

Fears that these investors would dump Fannie and Freddie bonds forced the Treasury to propose its rescue plan Sunday - sending as strong signal to these investors that a default isn't on the horizon. "The debt holders and the U.S. government are the true economic owners" of Fannie and Freddie, writes Chris Whalen at the Institutional Risk Analyst. Accordingly, bondholders are likely to end up controlling the equity of the company in the event of any restructuring.

More galleries
Last updated July 18 2008: 4:35 PM ET
More Galleries
50 years of the Ford Mustang Take a drive down memory lane with our favorite photos of the car through the years. More
8 CEOs who took a pay cut in 2013 Median CEO pay inched up 9% in 2013 to $13.9 million. But not everyone got a bump last year. Here are eight CEOs who missed out. More
10 best convertibles now that spring has sprung It's finally time to put the top down. Here are our 10 favorite rides for the warmer months to come. More
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.