Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬: Government support for Freddie Mac and Fannie Mae must not be ambiguous.
Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬: U.S. Treasury Secretary Tim Geithner is calling for an end to what he calls the Ã¢â‚¬Å“ambiguityÃ¢â‚¬ over the US governmentâ€˜s involvement in the two nationalized mortgage finance companies , Fannie Mae and Freddie Mac.
Mr. Geithner said that private gains could no longer be supported by the explicit guarantee provided by the firms being made wards of the state.
Geithner said the Treasury Department and the Department of Housing and Urban Development would seek comment by April 15 on how to revamp Americaâ€˜s housing-finance system and its regulatory structure.
Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ analysts say that there is a veneer of dÃ©jÃƒ vu as far as the two companies and the fact they enjoy government protection is concerned and there is a need for complete transparency when taxpayers money is being used to provide shelter for entities that seek to make private profits.
The US government under Barack Obama has said that investors should harbor no doubts that the administration and the full weight of the resources at its disposal would be used to guarantee the obligations of the two companies which were taken into conservatorship by Mr. Geithnerâ€˜s predecessor, Henry Paulson but Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ said that both firms are repeatedly returning to the Treasury for additional funds.
Fannie Mae and its smaller sibling, Freddie Mac, between them guarantee or own more than half of the entire US mortgage market and Ã¢â‚¬Å“Source One InternationalÃ¢â‚¬ do not believe that the US mortgage market can function effectively without them.