Treasury Secretary Timothy Geithner, in excerpts of remarks to be delivered at a Treasury conference on restructuring the two government-controlled mortgage finance giants, called that task one of the most “consequential and complicated” problems facing the United States.
“We will not support returning Fannie and Freddie to the role they played before conservatorship, where they took market share from private competitors while enjoying the perception of government support,” Geithner said. “We will not support a return to the system where private gains are subsidized by taxpayer losses.”
The conference, to feature some of the mortgage sector’s top lenders and investors, is billed as a “listening session” as the administration gathers ideas to develop an overhaul plan by January. No major changes are expected before 2011.
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