Fannie and Freddie “Biggest Disasters of All Time”
A congressional panel, the Financial Crisis Inquiry Commission, released audio files of testimony it gathered during its 18-month investigation into the causes of the financial collapse. Included in that testimony was an interview with JPMorgan Chase CEO Jamie Dimon, in which he called Fannie Mae and Freddie Mac “the biggest disasters of all time”, adding that the two now-government controlled entities and their failures were a leading cause of the nation’s financial meltdown.
Meanwhile, the US Treasury Secretary, Timothy Geithner on Friday outlined three options for unwinding the two mortgage companies in a report sent to Congress. The Obama administration is currently trying to find a way to end taxpayer support for the agencies and gradually decrease the dependence of the $11 trillion mortgage market on the US government. Combined, Fannie and Freddie have been given more than $150 billion in taxpayer assistance since federal regulators seized the two companies in September 2008.