Today a top regulator tried to squash fears that Freddie and Fannie needed to hold more capital. James Lockhart the director of the Office of Federal Housing Enterprise Oversite said that, "From Our standpoint, an accounting change should not drive capital."
Reaction to his comments were mixed and varried depending on the news outlet.
Here is a link to the Wall Street Journal article from Danian Palletta 7/9/2008. http://online.wsj.com/article/SB121552340873635665.html?mod=googlenews_wsj
Here is a link to the Financial Times article on the speach.
http://www.ft.com/cms/s/0/01f1a01e-4d4f-11dd-b527-000077b07658.html
We are interested in hearing what you think? Is more captial going to improve the situation? Is more Federal regulation and manipulation going to solve the housing challenges?
Post your comments and links to other articles.