Geithner on Fannie and Freddie: 'Not Essential'

Includes: FMCC, FNMA, GM
by: Rubicon Associates

Tim G in front of the Senate Banking Committee:

“We did not believe that we could at this time -- in this time frame -- lay out a sensible set of reforms to guide, to determine what their future role should be,” Treasury Secretary Timothy Geithner told the Senate Banking Committee in Washington today. “We’re going to begin a process of looking at broader options for what their future should be.”

“We just didn’t think its an essential thing to do just now, but it is an essential thing to do,” Geithner said.

They believe that it is not essential to deal with the FNM/FRE issue just yet? General Motors (GMGMQ.PK) and Chrysler took the pole position and were/are more essential than the $5.4 trillion agency issue. The two auto companies didn't make up even 30% of the domestic auto sales and they were vital. Half the mortgage market = "not essential" according to Geithner. In other words: We need to own them to accomplish our mission.

Maybe Jon Stewart should lecture them on responsibility.

Disclosure: US Taxpayer