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Greenspan on Fannie and Freddie

Greenspan today (February 24) called for Congress to appoint a regulator and impose debt ceilings on Fannie Mae and Freddie Mac. Without such action, the rapid growth of these huge agencies was "likely" to cause systemic difficulties:

"To fend off possible future systemic difficulties, which we assess as likely if GSE (government sponsored entities) expansion continues unabated, preventative actions are required sooner rather than later," he told the Senate banking committee.

Fannie Mae, the

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