DealZone

Corzine: Ditch hybrid structure for Fannie, Freddie

By Reuters Staff
August 27, 2008

The federal government should ditch the hybrid structure of mortgage giants Fannie Mae and Freddie Mac and fully back them with taxpayer funds, said New Jersey governor Jon Corzine, former CEO of Goldman Sachs.

“I don’t think we can continue with the schizophrenic view that we have today, sort of part public company, part private company, where the leaders of the company do well when things are going well but then the government and the public and the taxpayer has to bail them out when it goes bad,” he said.

This report is by Corbett B. Daly, Washington bureau chief for Thomson Reuters Markets.

Comments
2 comments so far | RSS Comments RSS

Oh my god. How stupid is this guy??

Yeah, great idea. Make TAXPAYERS give money to the government so that they can then GET A LOAN from the government?

I mean what the heck. What is the country doing??

Hey smart guy: If you want to help the public, let these companies fail. You know what would mean? It would mean their assets would be sold at firesale prices. YOU (the person reading my post) could potentially buy out your own personall mortgage for pennies on the dollar and owe no one a dime. Re-read that last sentence.

Even if you could not afford to buy your $150k mortgage for $25k cash, some other bank could and would make great profit off you and strengthen our financial system.

It is time to prune our markets – let the free market bei the pruner.

Posted by Clayton | Report as abusive
 

If you’d like a glimpse of what goes on in the state of NJ with Corzine at the helm, you must visit:
http://www.inthelobby.net
This is not fiction, it is what we deal with on a daily basis. Watch out America because Corzine is one of Obama’s top 20 financial advisors. Go figure.

Posted by Russ | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/