Undoing Moral Hazard in Governance of Fannie and Freddie for Liberty

The government is now arguing through several new Fannie-Freddie wind-down bills that replacing highly profitable mortgage financing firms with a (to be created) Federal Mortgage Insurance Corporation absolutely necessary to save the economy and to protect the taxpayers. The government has indicated would abide by the court’s decision on the value of Fannie-Freddie stocks so that it does not hurt investments.

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