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09-14-2003, 04:27 AM
As a result of the financial disclosure issues confronting Freddie Mac, the Congress is considering reforms for the GSE's, government sponsored enterprises Freddie Mac and Fannie Mae.
"It is also encouraging that Sec. Snow dismissed the idea of imposing an arbitrary moratorium of any length on making changes to the capital requirements for the two enterprises. Fannie Mae and Freddie Mac are highly leveraged and are among the largest traders of derivatives in the world. It would be fiscally irresponsible for the administration to foreclose any of its options to require the GSE's to hold more cash in case of emergencies. The GSE's should be legally required to hold capital much the same way banks do."
"Taxpayers and investors also deserve full transparency and accountability. Any reform bill enacted by Congress must include the Shays- Markey provision repealing the GSEs' exemptions from the nation's disclosure laws, including the 1933 Securities Act. Sec. Snow stated yesterday that he did not support repeal of those exemptions. CCAGW urges the Bush administration to reconsider that position," Paige concluded. "All in all, Secretary Snow's testimony represented a significant step toward greater accountability at Fannie Mae and Freddie Mac."
Read article
http://biz.yahoo.com/prnews/030911/dcth029_1.html
"It is also encouraging that Sec. Snow dismissed the idea of imposing an arbitrary moratorium of any length on making changes to the capital requirements for the two enterprises. Fannie Mae and Freddie Mac are highly leveraged and are among the largest traders of derivatives in the world. It would be fiscally irresponsible for the administration to foreclose any of its options to require the GSE's to hold more cash in case of emergencies. The GSE's should be legally required to hold capital much the same way banks do."
"Taxpayers and investors also deserve full transparency and accountability. Any reform bill enacted by Congress must include the Shays- Markey provision repealing the GSEs' exemptions from the nation's disclosure laws, including the 1933 Securities Act. Sec. Snow stated yesterday that he did not support repeal of those exemptions. CCAGW urges the Bush administration to reconsider that position," Paige concluded. "All in all, Secretary Snow's testimony represented a significant step toward greater accountability at Fannie Mae and Freddie Mac."
Read article
http://biz.yahoo.com/prnews/030911/dcth029_1.html