Fannie, Freddie bailout triggers credit default swaps More than $1 trillion of derivative contracts will need to be settled By Alistair Barr, MarketWatch Last update: 1:30 p.m. EDT Sept. 8, 2008 SAN FRANCISCO (MarketWatch) - The U.S. government's seizure of Fannie Mae and Freddie Mac has triggered more than $1 trillion of credit default swaps tied to the mortgage giants. The International Swaps and Derivatives Association said in a memo on Monday that 13 major credit default swap dealers unanimously agreed that a credit event had occurred.