Washington (Sept. 11, 2003) -- Treasury Secretary John Snow urged lawmakers to put mortgage securities concerns Fannie Mae and Freddie Mac under the auspices of the Treasury saying that they have grown too large for its current regulator, the Office of Federal Housing Enterprise Oversight.
In testimony delivered before the House Committee on Financial Services, Snow said "There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises."
Snow recommended that Congress create a new federal agency within the Treasury “to regulate and supervise the financial activities of housing-related government sponsored enterprises.”
A recent accounting scandal at Freddie Mac resulted in a housecleaning of many top officers as well as an earnings restatement of about $4.5 billion.
-- WebCPA staff
