From an article in today's Washington Post, reporting on an investigation by the Congressional committee's into Fannie Mae and Freddie Mac mortgage practices--
Lawmakers investigating what led to the collapse of Fannie and Freddie accused the richly-compensated executives of greed, recklessness and helping to cause the financial crisis.
The committee released e-mails, memos, presentations and other documents showing that top executives at Fannie and Freddie were warned years ago that moving into new, risky areas of the mortgage market posed significant dangers to the companies and borrowers.
“These documents make clear that Fannie Mae and Freddie Mac knew what they were doing," Waxman said. "Their own risk managers raised warning after warning about the dangers of investing heavily in the subprime and alternative mortgage markets."
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