Washington Post (05/08/08) P. D4
While admitting that Fannie Mae and Freddie Mac have been hit with losses as a result of the mortgage crisis and need greater oversight, Treasury Secretary Henry Paulson Jr. does not believe the government-sponsored enterprises (GSEs) should be prevented from playing a bigger role in the market's recovery. According to Paulson, Fannie Mae and Freddie Mac would not jeopardize their stability or pose a danger to the financial system if allowed to expand their mortgage purchases. The Office of Federal Housing Enterprise Oversight says it will relax rules restricting the GSEs' debt loads, making it possible for Fannie Mae to unload stock to raise $6 billion to buy more home loans.
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