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Meanwhile Citi other message skating nude and -- -- a -- -- -- vanity but today the government kicking back suing former Fannie and Freddie exacts for fraud.
There's not looking good for Newt Gingrich -- do as I said spent a considerable part of the debate last night depending taking paychecks in the past from these organizations.
First my policy is to break up both Fannie Mae and Freddie Mac is not anything like what you just described.
Second -- state unequivocally for every person watching tonight I have never wants.
Change my positions because of any kind of payment.
We can't have as our nominee for the Republican Party someone who continues to stand for Freddie Mac and Fannie made they need to be shut down not built up.
-- allegedly he says something needs to change so these gonna entities are no longer black holes -- taxpayers more California treasurer.
Investigated the -- well it was on the Financial Crisis Inquiry Commission.
Still the bottom line is there's still a -- the bottom line is they still low a lot of taxpayer money bottom line is these still account together for close to nine out of ten mortgages out there.
So we're still be -- -- I guess right.
Well look we do have to change what's in place today and and what happened in the lead up to the crisis was a travesty.
And I'm not surprised about today's charges from the SEC in our report from the Financial Crisis Inquiry Commission we saw that there are misleading statements made.
At as they were at Citigroup and Merrill Lynch and all kinds of other institutions.
On Wall Street and so now in the post crisis hear -- -- we go from here and I think it's very clear that this model -- that.
And their profits are privatized and the losses are borne by the taxpayers that's a broken model and you can't be sustained we have a very fragile housing market now.
We need to get back on track we need to reduce principal for homeowners.
To reset the clock.
But ultimately we're gonna have to move away from these behemoth models they clearly are broken horrible we can.
Argue another day maybe -- news the wisdom of you know cutting principal institutions.
There's a great discussion there but I do want to focus a little bit.
On in retrospect wasn't in the state not to get.
Fannie and Freddie as part of the financial reform law to got a pass since that time we've seen more and more.
Well these problems all stem from.
You know pre 2008.
And in fact in our report we pointed out discrepancies in the disclosures from Fannie Mae.
And there's no question that these institutions have to be reformed this model -- all the -- side.
Is not essentially.
Privatize losses are socialized broking and Dan Mudd who sued today made 65 million dollars CEO from 2000 to 2008.
I'm glad to see the SEC is finally at least charging some individuals of course they're not guilty until proven that way.
But but I do hope that it means will be a serious look at a range of misleading statements of come out of not -- Fannie.
But of range of institutions who did not disclose to shareholders and investors.
Let me I don't think there's any question that we need to move away from this model it is broken.
I will say that well I don't.
No real I would sit aboard -- -- -- -- revenue on but.
Why don't we are we so beholden soon -- -- or is it so -- -- store entangled in our system we just can't break away.
Well I don't know I mean the fact is we -- to move in that direction I do think today we need stability in the housing market I know it's another day -- we need to.
Reduce principal kind of unwind the mess it was created that the model going forward.
Should not be to have these two behemoth institutions.
With all the risks that they have a 160 million dollars they spent on lobby in the decade leading up to the crisis.
Huge compensation for their executives it ought to move back to a more same model would have -- -- a robust private sector.
And then you have the government -- FHA.
Or some other government entity.
Helping people up the -- homeownership rationally that this model was clearly broken -- -- -- it's -- -- you're gonna be well.
Good seeing you.