Fed's Tarullo: Need To Clarify Roles Of Fannie, Freddie
July 23 2009 - 12:39PM
Dow Jones News
U.S. policymakers need to better define the public and private
missions of Fannie Mae (FNM) and Freddie Mac (FRE) in order to
provide more clarity about their roles in the financial markets, a
top Federal Reserve official said Thursday.
Fed Gov. Daniel Tarullo, appearing before the Senate Banking
Committee, said there needs to be a finer line set by lawmakers
between the agencies' public policy missions to promote
homeownership, and their operations as private companies.
Both firms, which help maintain liquidity in the mortgage
finance market, have been under enhanced government control since
last year. What to do with them, as well as how they will be
regulated, remains an open question for policymakers as the Obama
administration pushes its proposals to revamp the financial
services industry.
-By Michael R. Crittenden, Dow Jones Newswires; 202 862 9273;
michael.crittenden@dowjones.com