The Present Condition and Future Status of Fannie Mae and Freddie Mac

The Present Condition and Future Status of Fannie Mae and Freddie Mac

Lawrence J. White | Jun 03, 2009

Currently, both Fannie Mae and Freddie Mac are deeply insolvent: The value of the assets of each company is inadequate to cover the value of that company's liabilities. This testimony explains that the hybrid model upon which the two Government Sponsored Entities are based, is broken. Hence, this testimony also advocates that after the financial crisis has receded, both companies should be truly privatized, with all ties to the federal government severed.