McCain would save Fannie Mae, Freddie Mac

LIVONIA, Mich., July 10 (UPI) -- U.S. Sen. John McCain, stumping in Michigan, said Thursday he would be open to federal intervention to save stressed Fannie Mae and Freddie Mac.

The two mortgage companies have watched their shares drop as they struggle to raise billions of dollars in fresh capital, The New York Times reported.

"Those institutions, Fannie and Freddie, have been responsible for millions of Americans to be able to own their own homes, and they will not fail, we will not allow them to fail,'' McCain, the presumptive Republican presidential nominee, said during a campaign stop in in Livonia. "They are vital to Americans' ability to own their own homes. And we will do what's necessary to make sure that they continue that function.''

On another topic, McCain said he was troubled by Iran's missile test-firings and "totally" agreed with Secretary of State Condoleezza Rice's statement that the United States would protect its interests and its allies.

When asked whether the United States was moving closer to a military confrontation with Iran, McCain said, "I hope not, but it's very clear that the Iranians have failed to rein in their ambitions. ... And it's a very compelling argument to enact sanctions that will be effective."