Fannie, Freddie pose risk to financial system, panel says in 'historic' finding

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Fannie Mae and Freddie Mac, the government-run companies that stand behind about half of the $11 trillion U.S. mortgage market, pose a potential danger to the stability of the broader financial system, a Treasury-led panel said today

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Fannie and Freddie don't make home loans but rather purchase mortgages from lenders and bundle them into securities for sale on the secondary market. That frees up the lenders to make more loans. The council — which is led by Treasury Secretary Steven Mnuchin — unanimously endorsed the review’s findings, which will be released later Friday after markets close.

 

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Dodd-Frank was put together to make sure we wouldn't repeat the 2008 crash. Trump and Republicans got rid of Dodd Frank. And here we are!

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