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IPFS News Link • Economy - Economics USA

Do Fannie and Freddie Need a 'Bad Bank?'

• BusinessWeek
As the Administration weighs options for reorganizing Fannie Mae and Freddie Mac in the wake of their dismal financial performance. Months ago, policymakers and outside experts weighed the benefits of creating a "bad bank" to hold commercial banks' toxic assets, but the idea never gained traction. Now, some suggest, the concept could help to restructure the mortgage giants—but the hurdles that caused commercial banks to adopt a different solution remain.

1 Comments in Response to

Comment by Anonymous
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No they need to be shuttered and closed so the Democrats have to stop using them for their own personal piggy banks.