Friday, August 07, 2009

U.S. Considers Remaking Mortgage Giants -

U.S. Considers Remaking Mortgage Giants - "The bad debts the firms own would be placed in new government-backed financial institutions -- so-called bad banks -- that would take responsibility for collecting as much of the outstanding balance as possible. What would be left would be two healthy financial companies with a clean slate.

The moves would represent one of the most dramatic reorderings of the badly shattered housing finance system since District-based Fannie Mae was created by Congress to support mortgage lending during the Great Depression."

Here we go again. Another grand scheme. And only today I heard President Obama expounding about how his policies had rescued the financial system from "the brink." But now another massive reform is called for.

No comments: