Thursday, May 13, 2010

Fannie & Freddie...Toxic Twins Continue to Hemorrhage

Something needs to be done about the massive money pit known as Fannie Mae and Freddie Mac. To date, they have consumed $145 billion with nothing to show for it. The money pit is looking bottomless.

McCain proposed an amendment to the Senate's financial bill that would shrink Fannie and Freddie, raise their underwriting and capital standards, cap their losses, and hold them accountable to the point of shutting them down if they continue to demonstrate financial incompetence.

Dodd, the Senate Banking Chairman said, "not now." And like every useless Senator, he suggested that Treasury conduct a study.

Fannie and Freddie should have the mantle of too-big-to-fail removed immediately. The senior management should be brought up on financial mismanagement and corruption charges, just like CEOs of public companies have have experienced. (What more public are Fannie and Freddie?)

The McCain amendment failed, of course. Financial reform has also failed.

Connecticut, do us all a favor, next time Dodd runs for re-election, defeat him. He personifies what is wrong in Washington.

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