Freddie Mac-No Politics (FMCC)

[navycmdr]

$Booooooom ! - Lockhart Suggests $GSEs $Make $Their Case

to $End $Conservatorship !! - [e-mail]

James Lockhart, the former director of the Federal Housing Finance Agency
who put Fannie Mae and Freddie Mac into conservatorship, thinks the
conservatorship has lasted long enough.

“In my mind,” he said in an interview with Inside The GSEs, “what Fannie
and Freddie and the FHFA should be doing is trying to convince Congress
it’s time to get them out of conservatorship.”

He also still holds out some hope that the Treasury Department and FHFA
could work together to get the enterprises out of conservatorship.

To complete the process, he suggested that Fannie and Freddie should
create new subsidiaries. “Those could be capitalized by their parents,
but eventually there would be an initial public offering for the subsidiaries
to get them out of government control,” Lockhart said.