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The reason I think a Fannie + Freddie merger is a non-starter is because the Dems would then have one less multi-million dollar per year CEO position to dole out to one of the Party faithful...:rolleyes:
Fannie, Freddie Face Pressure to Revamp as U.S. Aid Increases
April 15 (Bloomberg) -- Fannie Mae and Freddie Mac are under pressure from lawmakers to revamp their operations as the mortgage-finance companies tap more government money to survive.
Among the options under discussion are combining the companies, breaking them up or reshaping their missions...
...Executives at Washington-based Fannie have discussed internally the possibility of taking over McLean, Virginia-based Freddie’s operations, according to people familiar with the matter...
...“There will be a massive re-write of the GSEs into some new structure,” though probably not this year, Petrou said...
...A merger would be the quickest way for regulators to cut costs by reducing Fannie and Freddie’s combined 11,000-person workforce, shedding underperforming mortgage assets and reducing the bureaucracy of running two companies with identical functions...
...“It’s got to happen; we’re not going to put them back the way they were,” Whalen said of a merger. “The only way we’re going to be able to manage them is if we squeeze every last ounce of savings out of the administrative side and just focus on trying to keep the loss number under control.”...
April 15 (Bloomberg) -- Fannie Mae and Freddie Mac are under pressure from lawmakers to revamp their operations as the mortgage-finance companies tap more government money to survive.
Among the options under discussion are combining the companies, breaking them up or reshaping their missions...
...Executives at Washington-based Fannie have discussed internally the possibility of taking over McLean, Virginia-based Freddie’s operations, according to people familiar with the matter...
...“There will be a massive re-write of the GSEs into some new structure,” though probably not this year, Petrou said...
...A merger would be the quickest way for regulators to cut costs by reducing Fannie and Freddie’s combined 11,000-person workforce, shedding underperforming mortgage assets and reducing the bureaucracy of running two companies with identical functions...
...“It’s got to happen; we’re not going to put them back the way they were,” Whalen said of a merger. “The only way we’re going to be able to manage them is if we squeeze every last ounce of savings out of the administrative side and just focus on trying to keep the loss number under control.”...
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