Financial reform

Still Riding the GSE Train

Will the U.S. federal government ever exit mortgage finance? Not any time soon.Let us explain why.
In September 2008, as investors shunned the debt of Fannie Mae and Freddie Mac, the U.S. Treasury put these government-sponsored enterprises (GSEs) into federal conservatorship, kicking off the most intense months of the financial crisis. Not long after, the CBO estimated the fair value of the GSEs losses at $291 billion (or more than 5% of their end-2009 mortgage portfolios)...
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