Final answer:
The U.S. government intervened in the case of Fannie Mae and Freddie Mac during the Financial Crisis of 2007/2008 to prevent the collapse of the entire banking system.
Step-by-step explanation:
The U.S. government intervened in the case of Fannie Mae and Freddie Mac during the Financial Crisis of 2007/2008 to prevent the collapse of the entire banking system. These two government-regulated corporations bought and sold mortgages from banks and were at risk of defaulting, which would have caused other banks to fail and cost taxpayers billions of dollars. By nationalizing Fannie Mae and Freddie Mac, the government aimed to stabilize the housing market and prevent further economic damage.