...until agency spreads blow out, no doubt. Just another lame attempt by the outgoing administration to hand-tie the nation and the new administration.
There are days that I think the GOP no longer care about the finances of the Republic - even its homeowners - and would just assume see it go through "bankruptcy", just like they want for GM and every other homeowner who gets a foreclosure notice.
It bears reminding, I guess, that we are a nation of people, not merely cash flows and assets:
So, now that the McCain camp which tried to use this same “Fannie/Freddie did it” fairy tale in its anti-Obama campaign—is history, as is most of Fannie and Freddie--what are the Republicans going to dredge up to in an effort to sanitize their regulatory shortcomings and, once again, blame Fannie Mae and Freddie Mac?
Most observers point to the seminal actions by Mudd and Syron, respectively, to purchase large amounts of toxic Alt A and private label subprime securities (PLS) in 2006 and 2007, as the major red ink causes.
But, almost as important, is the fact that virtually every aspect of the two mortgage companies business was presided over and blessed by their former regulator the Office of Housing Enterprise Oversight (OFHEO), following the May, 2006 consent agreements both companies signed with OFHEO. From that point on, the regulatory agency had their own employees in both companies every business day of the week reviewing all transactions and decisions.
If the former GSE managements made bad business calls, what’s that say about the OFHEO staff who shared in their meetings and machinations?
This next Waxman hearing should be fun to watch as the Committee GOP has to perforce blame other Republicans for mortgage misfeasance or malfeasance!
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