Written by Biloxi
A little interesting information that I found on the Securities and Exchange website of a memo in July 2008 under then SEC head Christopher Cox in investor protections of short selling in securities of Freddie Mac and Fannie Mae.
Here is the excerpt:
FOR IMMEDIATE RELEASE2008-143
Washington, D.C., July 15, 2008 - The Securities and Exchange Commission today issued an emergency order to enhance investor protections against "naked" short selling in the securities of Fannie Mae, Freddie Mac, and primary dealers at commercial and investment banks.
The securities identified in the Commission's order:
Company
BNP Paribas Securities Corp.
Bank of America Corporation
Barclays PLC
Citigroup Inc.
Credit Suisse Group
Daiwa Securities Group Inc.
Deutsche Bank Group AG
Allianz SE
Goldman, Sachs Group Inc
Royal Bank ADS
HSBC Holdings PLC ADS
J. P. Morgan Chase & Co.
Lehman Brothers Holdings Inc.
Merrill Lynch & Co., Inc.
Mizuho Financial Group, Inc.
Morgan Stanley
UBS AG
Freddie Mac
Fannie Mae
What the media is not focused on a little nugget found in the NYTimes in 2003. Bush Administration sought to create an agency to oversee Fannie Mae and Freddie Mac. Under the plan, a new agency would be created within the Treasury Department to supervise Fannie Mae and Freddie Mac. This was disclosed in a Congressional hearing in 2003. Then,Treasury Secretary John W. Snow backed the plan. The bill died in the Senate committee. The members of the 108th congress expressed faith in the solvency of Fannie and Freddie.
In 2005, a bill Federal Housing Enterprise Regulatory Reform Act was being implemneted. The purpose of the bill was to increase government oversight of loans given by Fannie Mae and Freddie Mac. That bill died in the Senate committee. This time it was under the 109th Congress.
On July 24, 2008, then President Bush signed into law the Housing and Economic Recovery Act of 2008 which enabled expanded regulatory authority over Fannie Mae and Freddie Mac by the newly established Federal Housing Finance Agency [FHFA], and gave the U.S. Treasury the authority to advance funds for the purpose of stabilizing Fannie Mae or Freddie Mac.
In the end, the collapsed Freddie Mac and Fannie Mae, who were two largest government-sponsored companies and key players in the mortgage lending industry, were seized by then Treasury Secretary Paulson in September 2008.
Here is the excerpt:
FOR IMMEDIATE RELEASE2008-143
Washington, D.C., July 15, 2008 - The Securities and Exchange Commission today issued an emergency order to enhance investor protections against "naked" short selling in the securities of Fannie Mae, Freddie Mac, and primary dealers at commercial and investment banks.
The securities identified in the Commission's order:
Company
BNP Paribas Securities Corp.
Bank of America Corporation
Barclays PLC
Citigroup Inc.
Credit Suisse Group
Daiwa Securities Group Inc.
Deutsche Bank Group AG
Allianz SE
Goldman, Sachs Group Inc
Royal Bank ADS
HSBC Holdings PLC ADS
J. P. Morgan Chase & Co.
Lehman Brothers Holdings Inc.
Merrill Lynch & Co., Inc.
Mizuho Financial Group, Inc.
Morgan Stanley
UBS AG
Freddie Mac
Fannie Mae
What the media is not focused on a little nugget found in the NYTimes in 2003. Bush Administration sought to create an agency to oversee Fannie Mae and Freddie Mac. Under the plan, a new agency would be created within the Treasury Department to supervise Fannie Mae and Freddie Mac. This was disclosed in a Congressional hearing in 2003. Then,Treasury Secretary John W. Snow backed the plan. The bill died in the Senate committee. The members of the 108th congress expressed faith in the solvency of Fannie and Freddie.
In 2005, a bill Federal Housing Enterprise Regulatory Reform Act was being implemneted. The purpose of the bill was to increase government oversight of loans given by Fannie Mae and Freddie Mac. That bill died in the Senate committee. This time it was under the 109th Congress.
On July 24, 2008, then President Bush signed into law the Housing and Economic Recovery Act of 2008 which enabled expanded regulatory authority over Fannie Mae and Freddie Mac by the newly established Federal Housing Finance Agency [FHFA], and gave the U.S. Treasury the authority to advance funds for the purpose of stabilizing Fannie Mae or Freddie Mac.
In the end, the collapsed Freddie Mac and Fannie Mae, who were two largest government-sponsored companies and key players in the mortgage lending industry, were seized by then Treasury Secretary Paulson in September 2008.
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