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Federal National Mortgage Association Message Board

  • wynkwyn wynkwyn Apr 4, 2013 8:53 AM Flag

    Paulson's remarks are good for the GSEs

    Paulson's remarks are good for the two GSEs. Why? Because, with remarks of the former Treasury secretary who helped place the GSEs under "Conservatorship", the issue is now more exposed to the public for an open debate. Nobody denies the share of responsibility of the GSEs in the housing bubble that caused the recent recession and nobody denies the GSEs need "overhaul", reforming, etc. But, what about the banks? Did they behave any better in the whole financial crisis? If they had been clean and had not passed on bad mortgage loans to GSEs, they would not have needed to pay huge amounts of settlement money or buy back bad loans from GSEs. Then, take Goldman Sachs for example. Paulson was its CEO before coming to head the Treasury. That bank was near bankruptcy in 2008 and survived only through a multiple billion bail-out from Warren Buffet. And only yesterday a former Goldman Sachs trader was reported to admit guilty to a fraud concerning a 83 billion affair. Banks or GSEs, each has its own problem and they all need reform and "overhaul", but such reforms or re-organization should be done in a way that is best for the recovery of US economy and hence best for the nation as a whole.

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    • The more I read Paulsons remark of disbelief, the more stupid it looks and sounds. He's guilty as sin, and will be judged in the court of public opinion.

    • The GSE's - devoid of Franklin Raines and Roger Mudd, were nothing but big children lead astray by those willing to take advantage of it. Did they cause the financial mess. NO.

      Number of bad loans Originated by F&F during this time peirod = 0.

      The rating agencies look to be right back to business as usual.

      Mortgage Insurance which was suppose to soften the high LTV loans? Did they pay?

      Banks and Mortgage Bankers (that originated and sold loans) sure they came and went - but they had no skin in the game anyway,

      At the end of the day F&F were doing their jobs - they were created to do. So lets punish them.... great logic ..

    • Well said, although we need to convince senator Scott Garrett of this, who seems to be hell bent on killing the GSE's. His actions and motives are now suspect, 'as it appears'. Makes one think he's paid by the banks to serve in their greedy interest. Yesterday's Bloomberg article by James Fenkner titles 'F&F don't deserve capital punishment' summed it up quite lucidly.