Summers: Fannie,Freddie Shouldn't Be Recreated In Old Mold
24 April 2009 - 10:36PM
Dow Jones News
Lawrence Summers, President Barack Obama's top economic adviser,
Friday expressed doubt that government-controlled mortgage finance
giants Fannie Mae (FNM) and Freddie Mac (FRE) would be recreated in
their old mold.
Summers, a critic of the companies when he served as Treasury
secretary under President Clinton, said he expected a different
model for U.S. mortgage finance would be created, marked by a
"sharper cleavage" between the public and private roles.
"I think it is very unlikely that the answer lies in going back
to the past," he said at a panel discussion in Washington.
-By Jessica Holzer, Dow Jones Newswires, 202-862-9228;
jessica.holzer@dowjones.com