Tuesday, December 4, 2007
What is the role of Fannie Mae and Freddie Mac in the subprime crisis? They are government-chartered, publicly owned corporation, and therein lies the conflict. Can they bail out the homeowner facing foreclosure and still meet their fiduciary duty to their shareholders? Both companies' reputations were badly tarnished in recent years because of accounting scandals to inflate the bottom line. WPost, Fannie, Freddie Face Conflicting Demands.