Time To Kill Off Freddie Mac, Fannie Mae, Says Barney Frank (click title to entry - thank you)
By Eric Savitz
At a hearing in Washington today, the chairman of the House Financial Services Committee said “the committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance. That’s the approach, rather than a piecemeal one.”
Fannie and Freddie, the largest U.S. mortgage finance companies, have received $110.6 billion in taxpaper aid since regulators took control of them in September 2008.
So, what would happen to the public holders of FNM and FRE? Nothing good, in the market’s view.
Freddie Mac shares are down 10 cents, or 7.6%, to $1.21.
Fannie Mae shares are down 6 cents, or 5.6%, to $1.01
I believe that will fall in line with the new Consumer Financial Protection Agency. It will remove corrupt practices and will better serve the citizens of the country.
That, and the Senate laying new ground rules for 'The Fed,' will round out a 'movement' if you will, among the current leadership to remove dysfunction and replace it with better regulated entities that may prove to be fool proof.
How many people knew they were all working on this issue so long and hard?
I wonder why?
Feeling a little disconnected from the work your federal government has been doing?
Feel like nothing was achieved for the last year?
Used to 'instant gratification' maybe?
I have absolutely no doubt the Republicans will reject all this as well.
Can't imagine why? Hm?