The U.S. government should maintain a role in supporting the residential-finance market but not under the public-private ownership structure of Fannie Mae and Freddie Mac, Treasury Secretary Timothy Geithner said at a hearing on the future of the companies.
The government already has provided more than $125 billion to Fannie Mae and Freddie Mac to help keep them solvent, and the United States is likely to suffer substantial losses on their “inherited commitments,” Geithner noted. He also said it would likely take several months to shape a housing-finance bill that could reach a consensus.
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Source: The Wall Street Journal, Nick Timiraos and Michael R. Crittenden (03/24/10)
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