GSEs Reported Losses Mean They Are Not the White Knight Some Had Hoped

Some of the financial world may be hoping that Freddie
Mac
and Fannie Mae are at least part of the
solution to the sub prime mess, but the two government sponsored
enterprises (GSEs) seem to have a propensity for getting into plenty of
trouble on their own.

Then James Lockhart, director of the Office of
Federal Housing Enterprise Oversight which regulates Fannie and Freddie
told CNBC television that the two GSEs should…

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