“The Obama administration is considering an overhaul of Fannie Mae and Freddie Mac that would strip the mortgage finance giants of hundreds of billions of dollars in troubled loans and create a new structure to support the home-loan market, government officials said.”
∙ White House mulls major Fannie-Freddie shakeup [SFGate]
The Administration is already backing away from the story:
http://www.reuters.com/article/marketsNews/idUSN0633536320090806
Probably indicates that Goldman Sachs hasn’t given its approval yet.
If this Administration is backing away from the story, then it’s a done deal.
I d much rather see the former officers stripped of their ill gotten gains. Present boss is from Puget Sound and a real winner.
Awesome. I “heart” u President Obama 🙂
anon, you are right. Goldman Sachs is very closely tied to Washington, more than most people would ever realize.
See “The Quiet Coup” by MIT Sloan Professor and ex IMF Chief Economist Simon Johnson.
If GSEs are restructured and a new entity was created, would it have any effect or over ride the new idiotic appraiasal rules in place?
CR reports that Fannie lost 14.8b in Q2 and is requesting almost 10.7b from Treasury. Currently 171b in loans guaranteed by FNM are non-performing.
^^^
More importantly, IMO, is that the Fannie/Freddie bailout now exceeds the amount of money destroyed in the “rescue” of AIG. And it ain’t even close to over yet. Anything to help Wile E. Coyote hit a few ledges on his way down, I guess.