About $400 billion in bonds and bonds in China went up in smoke. Fannie Mae and Freddie Mac are two big companies in America. The main purpose of Fannie Mae and Freddie Mac is to buy bank loans and then package them into derivatives such as MBS and CDO and sell them to other investors. Fannie Mae and Freddie Mac crisis, also known as subprime crisis, is called subprime crisis and subprime crisis in English. It is the popular romance of the American subprime mortgage crisis.