The Federal Housing Finance Agency, which oversees Fannie Mae (FNMA.OB) and Freddie Mac...

The Federal Housing Finance Agency, which oversees Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), releases a new plan to unwind the GSEs and help strengthen the private mortgage market. One possibility: Each could hire an outside investment firm to manage their portfolios, but a BlackRock or Pimco would charge hefty fees that could exceed any savings from laying off staff.

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Comments (7)
  • Leftfield
    , contributor
    Comments (4070) | Send Message
    They're all members of the same insider's club. The Federal Housing Finance Agency is the minor league version that trains for the big rewards after government "service" via the career revolving door.


    The market for Wall Street "talent" was kept obscenely high via taxpayer bailouts that notably include Wall Street's now unlimited use of FNM and FRE as a dumping ground for their most worthless and fraudulent mortgage "assets" the taxpayers are forced to swallow at face value.


    Taxpayers are surely to be the big losers as usual in any Washington/Wall Street games which only involve shuffling deck chairs on the Titanic and partnering with Wall Street and hedge funds to make off with the lifeboats. All the while, heads they win, tails, we lose.
    21 Feb 2012, 05:28 PM Reply Like
  • nydivide
    , contributor
    Comments (2) | Send Message
    BlackRock can hire Chris Dodd and El-Erian/Gross can appoint the newly retired Barney Frank to lead the venture for PIMPco. Perhaps Cuomo can return to his roots and advise HUD. I am sure winning teams such as this will change your mind.


    Agreed that Public/Private partnerships are only good for bureaucrats and crony corpratists...the taxpayers and public in general will suffer...AGAIN.
    21 Feb 2012, 11:19 PM Reply Like
  • suddencall
    , contributor
    Comments (59) | Send Message
    These GSI'S have worked fine for many years and I believe the republicans and blue dogs should but out and leave them alone,Regulators are top blame for this disaster and republicans are responsible for the regulators. Is there anyth8ing that republicans wont try to destroy.
    22 Feb 2012, 05:39 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11387) | Send Message
    Bring back the Resolution Trust Corporation!

    21 Feb 2012, 06:32 PM Reply Like
    , contributor
    Comments (10809) | Send Message
    BlackRock or Pimco would charge hefty fees that could exceed any savings from laying off staff.


    DUH !
    21 Feb 2012, 06:47 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3527) | Send Message
    What savings? You'd have to give the staff early retirement and lifetime pension and medical payments.
    21 Feb 2012, 07:07 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13619) | Send Message
    What savings, their holdings are burning a hole in their pocket as they absorb all the ad loans from banks. The best way for them to have a role is to stop buying crap loans at rates that can't even cover defaults. Why should the public pay for this? They shouldn't. And why should we have a socialized housing market in a free market economy? We shouldn't.


    Everything is wrong about these monopolistic government entities feeding on taxpayers money. The only reason they persist is because of lobbying, banks want them so they can use them as backdoor bailouts, and the fact that those in power are vested in their existence after supporting their takeover of the entire home mortgage market.
    21 Feb 2012, 11:03 PM Reply Like
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