- DECEMBER 23, 2011
What Fannie and Freddie Knew
The SEC shows how the toxic twins turbocharged the housing bubble.
- Democrats have spent years arguing that private lenders created the housing boom and bust, and that Fannie Mae and Freddie Mac merely came along for the ride. This was always a politically convenient fiction, and now thanks to the unlikely source of the Securities and Exchange Commission we have a trail of evidence showing how the failed mortgage giants turbocharged the crisis.
Associated PressFormer Freddie Mac CEO Richard Syron, left, and former Fannie Mae CEO Daniel Mudd during a Capitol Hill hearing in December 2008.
The executives deny the charges, and we hope they don’t settle. The case deserves to play out in court, so Americans can see in detail how Fan and Fred were central to the bubble. The lawsuits themselves, combined with information admitted as true by Fan and Fred in civil nonprosecution agreements with the SEC, are certainly illuminating. (more…)