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8 months ago
in Fannie & Freddie Should Be Fully Privatized on Blown Mortgage
Those calling for more or less regulation are missing it completely.
Not only had Congressional members been warned for years about Fannie & Freddie's accounting manipulations and dangerously unstable loan portfolio by regulators (OFHEO, SCC, etc) and industry watchdogs, but a number of Representatives themselves chastised the GSEs and pushed for more stringent oversight and regulation (ex. Rep. Richard Baker, R - LA).
1.)http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=184820-1
2.)http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=177173-1
3.)http://www.nytimes.com/2008/10/05/business/05fannie.html?_r=1&oref=slogin
Was it really too much regulation that made Fannie/Freddie overstate their income in order to pay out excessive bonuses to their executive management? And was it congressional legislation like the CRA or or was it just the fear of loosing market share that twisted their arms to buy subprime & alt-a mortgage pools from Countrywide.
Anyone who blames the current condition of the GSEs on too much regulation has failed inform themselves of the history behind the crises. It's not about too MUCH or too LITTLE. The ideologues like Barney Frank want us to believe that.
Instead it's this: How about just enforce regulation that is already on the books. That's all they had to do.
And while I also don't agree with your conclusion that FNMA/FHLMC be privatized, I do believe that it has to be one (privatized like a bank) or the other (government agency like FHA). No organization can successfully survive in the private/public state of duality.
Not only had Congressional members been warned for years about Fannie & Freddie's accounting manipulations and dangerously unstable loan portfolio by regulators (OFHEO, SCC, etc) and industry watchdogs, but a number of Representatives themselves chastised the GSEs and pushed for more stringent oversight and regulation (ex. Rep. Richard Baker, R - LA).
1.)http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=184820-1
2.)http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=177173-1
3.)http://www.nytimes.com/2008/10/05/business/05fannie.html?_r=1&oref=slogin
Was it really too much regulation that made Fannie/Freddie overstate their income in order to pay out excessive bonuses to their executive management? And was it congressional legislation like the CRA or or was it just the fear of loosing market share that twisted their arms to buy subprime & alt-a mortgage pools from Countrywide.
Anyone who blames the current condition of the GSEs on too much regulation has failed inform themselves of the history behind the crises. It's not about too MUCH or too LITTLE. The ideologues like Barney Frank want us to believe that.
Instead it's this: How about just enforce regulation that is already on the books. That's all they had to do.
And while I also don't agree with your conclusion that FNMA/FHLMC be privatized, I do believe that it has to be one (privatized like a bank) or the other (government agency like FHA). No organization can successfully survive in the private/public state of duality.
1 reply
1.) http://preview.tinyurl.com/4jwgex
2.) http://preview.tinyurl.com/3wfulg