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Govt to take over Fannie Mae & Freddie Mac


JK2000

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In other words, they would have been forced to act responsibly

 

Do you even understand what you post? Of course Oxley is covering his arse. Too bad the FT doesn't mention that the reason White House & Greenspan didn't like the legislation is that it didn't mandate that Fan/Fred shrink their balance sheets - which WOULD have prevented the current situation. Of course that was out of the question for the GSEs in 2005, because the real reason for the legislation in 2005 was to expand their borrowing capacity to compete with Wall Street.

 

Maybe Oxley is so satisfied with the wonders that the other law with his name on it has done to US industry that he feels that his "Fan/Fred reform" bill would have worked too.

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