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Fannie, Freddie Were at Center of Financial Crisis But Are Not Included in Obama’s New Financial Regulations
Friday, June 19, 2009
By Matt Cover
(CNSNews.com) - Fannie Mae and Freddie Mac, the two government-run mortgage giants, are absent from the Obama administration’s sweeping new financial regulations, despite the fundamental role played by both organizations in the financial system’s collapse.
Testifying before the Senate Banking Committee on Thursday, Treasury Secretary Tim Geithner said that the administration’s new regulations were only meant to address the most fundamental issues of the recession.
During Geithner’s Senate testimony, he admitted that both Fannie and Freddie played a central role in the financial crisis, telling Sen. David Vitter (R-La.) that the two government-sponsored enterprises (GSE) were a “core part” of the country’s financial woes.
“Absolutely,” Geithner said. “Fannie and Freddie were a core part of what went wrong in our system.”
Originally posted by Hastobemoretolife
reply to post by shortywarn
In real life yes, that is exactly what it is. There are people that will argue with you and tell you that it isn't socialism because it doesn't fit the Utopian dream that they have been sold, but yes that is socialism in the real world.
And this is absolutely despicable. All new financial regulations, but they are going to exempt their buddies.
I have a brilliant Idea, how about get rid of stupid regs like the CRA and reinstate glass-steagle(sp?). The last thing we need is more regulations and laws when the government isn't even enforcing the ones we have now.
The absence of either Fannie or Freddie is notable, because the two companies once owned or controlled nearly $6 trillion worth of home and commercial mortgages, nearly half of the total U.S. mortgage market – and both companies were pioneers of the now infamous sub-prime mortgages that caused the mortgage market to implode late last year.