Friday, April 23, 2010

Financial Regulation Bill Does Nothing About Fannie Mae or Freddie Mac

Not a thing. Read about it in a memo from congressman Scott Garrett to Valeried Jarrett

I was a bit perplexed by your comments during your interview on Fox News this morning when you highlighted the importance of addressing excessive risk taking in our financial sector but discounted reforming the two biggest risk takers in our economy -- Fannie Mae and Freddie Mac. Based on your remarks, it appears to me that you might not be fully informed of the facts surrounding these two entities, their government bailout and their continued excessive risk taking. With leverage ratios reaching more than 100 to 1, Fannie Mae and Freddie Mac’s risk taking far outstripped anything that the private sector was doing. Given the importance of this issue, I wanted to take the opportunity to provide you with some facts on what many respected economists have called the “ground zero” of the financial crisis. Of course, you don’t have to take just my word on this.

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