Replies to post #16448 on Freddie Mac-No Politics (FMCC)

[mlkrborn]

Last update: 2/24/2010 11:02:40 AM

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By Michael R. Crittenden
Of DOW JONES NEWSWIRES


WASHINGTON (Dow Jones)--The Obama administration's plan for the future of Fannie Mae (FNM) and Freddie Mac (FRE) will not be unveiled until 2011, Treasury Secretary Timothy Geithner said Wednesday.
Geithner, appearing before the House Budget Committee, said the goal would be for the government to play a more productive, but less risky, role in the housing markets. He described the potential changes to the housing market as "fundamental," and said the Treasury wants to reassure financial markets about the status of Fannie Mae and Freddie Mac.
"It's very important that we make it clear to investors around the world that we will make sure...that those two important government-sponsored enterprises can continue the role they need to play," Geithner said.
The Obama administration was originally expected to unveil its plan for the two mortgage finance firms, which have been under government control since September 2008, with the fiscal 2011 budget earlier this month. Officials have since backed off their expectations, and Geithner said the plan is now to operate under a multistep process that will run into next year.
He said the Treasury now plans to introduce a series of "principles and broad objectives" sometime this year, which will be open for public comment. That feedback will help inform the legislative proposals the Treasury now plans to provide to Congress next year.
"That's going to be a difficult set of reforms," Geithner said.
-By Michael R. Crittenden, Dow Jones Newswires; 202 862 9273; [e-mail]
(END) Dow Jones Newswires
February 24, 2010 11:02 ET (16:02 GMT)

[mlkrborn]

Geithner's remarks on reforms:


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By Michael R. Crittenden
Of DOW JONES NEWSWIRES


WASHINGTON (Dow Jones)--The Obama administration's plan for the future of Fannie Mae (FNM) and Freddie Mac (FRE) will not be unveiled until 2011, Treasury Secretary Timothy Geithner said Wednesday.
Geithner, appearing before the House Budget Committee, said the goal would be for the government to play a more productive, but less risky, role in the housing markets. He described the potential changes to the housing market as "fundamental," and said the Treasury wants to reassure financial markets about the status of Fannie Mae and Freddie Mac.
"It's very important that we make it clear to investors around the world that we will make sure...that those two important government-sponsored enterprises can continue the role they need to play," Geithner said.
The Obama administration was originally expected to unveil its plan for the two mortgage finance firms, which have been under government control since September 2008, with the fiscal 2011 budget earlier this month. Officials have since backed off their expectations, and Geithner said the plan is now to operate under a multistep process that will run into next year.
He said the Treasury now plans to introduce a series of "principles and broad objectives" sometime this year, which will be open for public comment. That feedback will help inform the legislative proposals the Treasury now plans to provide to Congress next year.
"That's going to be a difficult set of reforms," Geithner said.
-By Michael R. Crittenden, Dow Jones Newswires; 202 862 9273; [e-mail]
(END) Dow Jones Newswires
February 24, 2010 11:02 ET (16:02 GMT)