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09-07-2003, 04:46 PM
Freddie Mac's fianancial issues has brought to the forefront, Congressional proposals to reform their regulatory structure. However, the question that should be addressed first is whether the current regulatory structure should not be strengthened. Dismembering and re-creating federal agencies is a nightmare, and places a lot of uncertainty in the regulatory process.
"The proposal would subject the firms to new risk tests, increased capital standards and additional disclosure requirements.
In addition, the federal Department of Housing and Urban Development would have to review any new lines of business the agencies would want to enter."
With regulatory agencies, sometimes the cure is worse than the illness," said Charles M. Elson, chairman of the Center for Corporate Governance at the University of Delaware's College of Business and Economics."
The Congressional leadership should insist that no legislative action can be taken until the proponents of the legislation delineate in a White Paper what the proposed legislation can achieve which can not be achieved through strengthening the exisiting regulatory system.
Read article
http://www.2theadvocate.com/stories/090703/new_mortgage001.shtml
"The proposal would subject the firms to new risk tests, increased capital standards and additional disclosure requirements.
In addition, the federal Department of Housing and Urban Development would have to review any new lines of business the agencies would want to enter."
With regulatory agencies, sometimes the cure is worse than the illness," said Charles M. Elson, chairman of the Center for Corporate Governance at the University of Delaware's College of Business and Economics."
The Congressional leadership should insist that no legislative action can be taken until the proponents of the legislation delineate in a White Paper what the proposed legislation can achieve which can not be achieved through strengthening the exisiting regulatory system.
Read article
http://www.2theadvocate.com/stories/090703/new_mortgage001.shtml