Debates about federal subsidies and adequacy of supervision have dogged Fannie Mae and Freddie Mac for years, but something about this year seems different. Competitors and critics on Capitol Hill have tried to impose disclosure requirements or enact regulatory reforms many times, only to be held back by the companies' lobbying strength. The political momentum changed, however, after Freddie's accounting gaffs and management shakeup made for one of the biggest business scandals of the summer.
The problems at Freddie renewed questions about whether the Office of Federal Housing Enterprise Oversight is up to the task of overseeing Fannie and Freddie. Some of the worries about Freddie have creeped over to Fannie, which has had to respond to accusations about the sufficiency of its interest-rate risk management. With the OFHEO chief out the door for political reasons, and the Federal Housing Finance Board chairman involved in his own scandal, the regulatory agencies are vulnerable to reform efforts at a time when Freddie, and maybe even Fannie, are on the ropes.
The following are a selection of articles on GSE-related business and political clashes this year that are divided into three categories. Whether they prove to be the usual much ado about nothing, or represent a turning point, will be seen in the stories that come out the rest of the year.
Selected Article Topics:
Fannie Mae/Freddie Mac/OFHEO
Disclosure Drumbeat Pounds GSEs - August 08, 2003Issues at Freddie Costing Fannie Money, CEO Says - July 31, 2003A New Wrinkle In Freddie Risk Management - July 30, 2003Report on Freddie Has Handful of Surprises: A name that comes up more than expected: Leland Brendsel - July 24, 20032Q Earnings: Fannie Blinks On Duration Gap Criticism - July 16, 2003Chief: OFHEO Wasn't Asleep At the Switch - July 2, 2003Is Nonprime Fix for Other Problem At Freddie?: Using credit risk to mitigate prepayments -- and maybe politics - July 01, 2003Pipeline: Freddie Effect - Looking Past The Numbers - June 26, 2003Questions On Freddie Accounting Get Harder: Probing possible willful misstatement; targets unclear - June 10, 2003Who Gains: New Rivals? Freddie? - June 10, 2003Big-Name Republican Leads Revamped FM Watch - May 14, 2003Fed Chairman to Congress: Watch Liquidity of GSEs - April 25, 2003St. Louis Fed Chief Sends GSE Stocks Plunging - March 11, 2003Was OFHEO Chief's Fate Sealed by A GSE Deal? - February 12, 2003In Brief: Bush Picks Brickell for OFHEO Post - February 6, 2003Agencies Urge Fannie, Freddie To Disclose More - February 4, 2003JPM Veteran Said Eyed for OFHEO Post - January 17, 2003Tough Talk from OFHEO Chief on Checking GSEs - January 16, 2003
Federal Home Loan Banks
Do Board Structure, Chairman's Role Contribute to FHLB Strife? - August 1, 2003FHLB Strife: The Roots Lie Partly in a Dual Mission - July 31, 2003FHLB Income Declining; Chiefs' Paychecks Aren't - April 3, 2003In Focus: Lindsey Clears Air: FHLBs Never Came Up in GSE Policy Debate - March 17, 2003SEC Wants Home Loan Banks to Disclose More - March 13, 2003FHLB Disclosure in Doubt? - March 12, 2003FBI Drawn Into FHFB Investigation - March 5, 2003'34 Provision May Settle FHLB Spat with Regulator - February 14, 2003Korsmo Probe Could Move Beyond Ethics - November 6, 2002Korsmo: I Erred, But 'My Conscience is Clear' - October 15, 2002Fund-Raiser Nets Criticism For Korsmo - October 1, 2002
Agency Restructuring
In Focus: GSE-Oversight Players Busy as Snow Readies for Spotlight - August 11, 2003Democrats: Brickell Not Tough Enough - July 23, 2003Senate Panelists Support Idea Of Moving OFHEO to Treasury - July 18, 2003Post-Freddie: Probes, Suits; New Agency for GSEs, FHLBs? - June 12, 2003DelliBovi: Treasury Plan Unapproved By White House - March 10, 2003Shake-Up Coming at GSE Oversight Office - February 5, 2003