Taking a Look Back

"Lets remind ourselves, this began with predatory lenders out there marketing products that borrowers could not afford. Fannie and Freddie were never bottom feeders. They had some Alt-A, they had some subprime, but nothing to the extent these other institutions had. That's where the problem lay."

Chris Dodd, former Senator from Connecticut @ 1:15:10

July 15, 2008 Senate Banking Committee Hearing on Preserving the viability of our Nation's Government Sponsored Enterprises with Hank Paulson, Ben Bernanke, and Christopher Cox                                       

Points of interest:

"Fannie and Freddie play a central role in our housing finance system and must continue to do so in their current form as shareholder owned companies."   

Hank Paulson @ 10:40

"Our proposal was not promoted by any sudden deterioration in conditions at Fannie Mae or Freddie Mac, OFHEO has reaffirmed that both GSE's remain adequately capitalized."   

Hank Paulson @ 12:21

"You don't think, several years down the line when the shares that the treasury has bought in Fannie and Freddie turnout to be a windfall and were able to balance the budget, you won't be heralded and saluted for the role that you played in that? I say that with tongue-in-cheek."   

Tom Carper, Senator from Delaware @ 46:51

"The tax payers have reacted and the market has reacted to your plan, Secretary Paulson, by driving down Fannie Mae shares by 26% today, right now, and Freddie Mac's are down 29%, as of this moment."   

Jim Bunning, former Senator from Kentucky @ 1:23:10

 


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