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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (12755)	4/28/2004 11:45:03 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 110194

Bad quotes.

To: ild who wrote (12755)	4/28/2004 11:48:19 AM
From: ild	Respond to of 110194

... Now, the Office of Federal Housing Enterprise Oversight, or Ofheo, the mortgage giants' financial regulator, is drafting a rule that would spell out how the agency could take over and wind down the companies' operations if they ever get into financial trouble. Adoption of that rule would send a strong signal to investors that Fannie and Freddie, despite their close ties to the U.S. government, aren't immune to the market forces that can engulf other financial institutions. Meanwhile, the Treasury is considering ways it could restrict the two companies' borrowings, which have ballooned in recent years to about $1.7 trillion, placing them among the world's biggest debtors. On a third front, the Department of Housing and Urban Development is taking a tougher stand in holding the companies to their "mission" of helping more low- and moderate-income people buy houses. HUD also is weighing more vigorous enforcement of its approval power over new financial products the companies develop. The administration still sees a need for legislation to clamp down on Fannie and Freddie but thinks regulatory steps will help constrain them in the meantime. By in effect parking more tanks on the companies' lawns, officials also hope to persuade them that they won't be able to avoid tougher regulation by resisting the administration's initiatives in Congress. ... online.wsj.com