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Article: Scaremongering on Fannie Mae and Freddie Mac
- Article from:
- The Washington Post
- Article date:
- November 26, 2006
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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William Poole, president of the St. Louis Federal Reserve, was
quoted in a Nov. 17 Business item as saying that the "Fed does not
have the legal authority" to come to the aid of Fannie Mae and
Freddie Mac should they require financial assistance. That silly
statement probably has the Fed's lawyers scratching their heads.
Neither company has ever asked the Fed for help, and their
federal charters declare -- and require the companies to note on
all of their printed securities -- that they do not represent the
full faith and credit of the federal government. Still, Mr. Poole
wants Congress to take away their federal charters, presumably so
the large banks that have long coveted the ...