In a Christmas Eve announcement, the US Treasury Department said that it would extend unlimited financial assistance to Fannie Mae and Freddie Mac, so as to help them remain in the black.

The recently-announced move by the administration comes only a few days before the congressionally mandated December 31 deadline pertaining to the increase in the financial aid amount to be provided to Fannie Mae and Freddie Mac.

The Treasury reiterated in a statement that the move “should leave no uncertainty about the Treasury's commitment to support these firms as they continue to play a vital role in the housing market during this current crisis.”

As such, going by the latest Treasury announcement, the two mortgage giants, having thus far received $111 billion, can further receive financial help from the federal department, even in excess of the existing $400 billion ceiling on emergency aid.

About the increase in the emergency aid cap, the Treasury specified that its decision did not imply that the firms would require $200 billion or more each; rather the move comes as an assurance to the markets that the government would support the two companies.

The recent Treasury Department decision comes after the Washington Post reported that Fannie Mae and Freddie Mac intending giving $42 million in compensation, ‘Wall Street-style,’ to twelve of its top executives for 2009 – with each of these executive to get $6 million!