4/06/2005

We need to watch Fannie Mae and Freddie Mac

Due the resent scrutiny in accounting scandals at both Fannie Mae and Freddie Mac the government is looking at ways to step in. Greenspan suggests that simply creating a strong regulator would not suffice. Fannie Mae and Freddie Mac control a large majority of our nation’s home loans, and as I see it the need to watch over and protect against accounting malpractice would be very beneficial to our nation but how?

2 comments:

Fred said...

I think much of the malpractice that goes on in accounting could be overcome if people who oversee accountants knew a little more about accounting. Of course we all have our areas of expertise but maybe if we were a little more diversified in the business realm as a people we could prevent a lot of malpractice; be it individuals or overseers.

Dr. Tufte said...

-1 on Eric's post for a spelling error.

This has been a festering problem fro quite some time. These government-sponsored enterprises are a problem waiting to happen. Congress will have to fix that as best they can when it happens. Like most things poltical though, there is no reason why Congress couldn't fix them now.