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Sen Johnson to Watt: “Engage Treasury Department In Talks To End The Conservatorship”

ValuePlays, By Todd Sullivan

Just yesterday we had Sens. Warren and Warner saying “the gov’t conservatorship of $FNMA is not a viable long term option” and now today we have Sen Johnson simply calling for the conservatorship to end.

The shrinking of the GSE’s under the conservatorship and the depletion of their capital bases is only hurting the housing market. Congress is beginning to understand this (finally) and has also come to grips with the fact their are no private entities or combination of private entities that could come anywhere close to being able to perform the functions of the GSE’s. So, first things first is to stabilize them and housing by getting rid of the conservatorship. Once that is done, the GSE’s can be overhauled to eliminate activities that cause them to crater in ’08-’09.

Read the full article: Sen Johnson to Watt: “Engage Treasury Department In Talks To End The Conservatorship”