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July 08, 2008 – Comments (0)

I'm sure glad this is taken care of:

Soothing Words for Fannie, Freddie

The top regulator for Fannie and Freddie said that future accounting rules would likely not lead regulators to demand that the huge mortgage-finance giants hold more capital, addressing fears that punished the stock prices of both firms a day earlier.

Heaven forfend that a for-profit banking entity be required to adhere to responsible capital requirements. Far better to let these yahoos -- who've proven in the past to be venal as well as stunningly incompetent -- do whatever is politically expedient.I'm coming around to think that the best solution for these two is to try and unwind them, get them off the (implied) public teat, and let the market price the right solution.

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