Treasury Getting Off Its Fannie
WASHINGTON ( TheStreet) -- Nearly two years after Fannie Mae (FNM) and Freddie Mac (FRE) were put into conservatorship, the Treasury Department is finally starting to consider what to do about housing finance.
At a panel discussion Tuesday, Bill Gross, Pimco chief investment officer; Lewis Ranieri, chairman of Ranieri and Co., and other financial and political leaders debated the future of the mortgage market, including that of the crippled government-sponsored enterprises Fannie and Freddie.
|Treasury Secretary Timothy Geithner|
Geithner argued that the government will have a "planned wind-down of GSEs' portfolios" but that a there's "strong case to be made" for continued guarantees.Deciding the fate of the GSEs will not be an easy task. Some argue that the U.S. has provided too much support for Fannie and Freddie and propose that the government get completely out of the business of housing finance. However, others suggest the country currently provides too-little support to promote housing affordability for lower-income Americans and are proposing reforms that would leave the current system largely in place. It's safe to say there's no clear consensus yet on how best to design a new system. -- Written by Lauren Tara LaCapra in Washington, D.C..
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV