Former executives from Fannie Mae and Freddie Mac, the goverment agencies whose mortage-loans holdings helped sink the economy, testified before the Congressional commission looking into the financial meltdown. Mark Williams, who teaches finance at the BU School of Management and is author of ”Uncontrolled Risk” about the fall of Lehman Brothers, says both agencies may have outlived their usefulness.
“Without the capital spigot these agencies created, less funds would have found their way to dangerously risky mortgage products. The government created Fannie Mae in 1938 and Freddie Mac in 1970, and took them over in 2008. It should consider taking them off life support in 2010.”
Contact Mark Williams, 617-358-2789, firstname.lastname@example.org