Posted by Jonathan Adler:
Regulating Freddie Mac:
http://volokh.com/archives/archive_2009_03_29-2009_04_04.shtml#1238336452
The Washington Post has an [1]interesting story on conflict between
Freddie Mac and the feds.
Half a year after the government seized Freddie Mac, confusion
about its role is stoking tensions between the company and its
regulator, including a dispute this month over how much the
mortgage giant should reveal to private investors about its
financial troubles.
Federal officials who took over Freddie Mac stopped short of
nationalizing the company, leaving it partly in private hands. This
means Freddie still has to answer to investors and file financial
disclosures.
But when Freddie Mac's executives concluded a few weeks ago that
they had to disclose that the government's management of the McLean
company was undermining its profitability and would cost it tens of
billions of dollars, the firm's regulator urged it not to do so,
according to several sources familiar with the matter.
Freddie Mac executives refused to bend. The clash grew so severe
that they threatened to go to the Securities and Exchange
Commission, which oversees corporate disclosures, to secure a
ruling that the regulator's request was out of line. The company's
regulator backed down, the sources said.
References
1.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/26/AR2009032604292.html?referrer=emailarticlepg
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