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The decorated tree adorns the living room, the stockings are stuffed with care, the milk and cookies are set out for Santa and the newly-cleaned chimney awaits his arrival. If Santa Claus did not make an appearance at your house, he certainly did at the home of Fannie Mae and Freddie Mac, the two quasi-governmental entities responsible for most of the home loans in America.
These two entities, which together own or guarantee over one half of home mortgages, and which had previously been injected with a $111 billion bailout, received an unexpected Christmas present from the Obama Administration: an executive...
A Very Green Christmas for Fannie and Freddie
How many loans was the insurance company AIG forced to give?
How many loans were Bear Stearns, Lehman Brothers, Merrill Lynch, JP Morgan, Goldman Sachs, AIG and American Express forced to give? Nil, they were outside the regulatory framework. ..."
That's a fairly shallow analysis, zapdoodat. Were those companies originators of loans or were they buying those loans from the originators and bundling them as securities? What is your understanding of the roles of Fannie Mae and Freddie Mac with regards to loan origination and government guarantees?