U.S. Likely To Keep Backing GSE Debt, Says Bernanke
03-19-2010 | Source: Total Securitization
Ben Bernanke, the chairman of the Federal Reserve Board, said the U.S. government will likely continue backing Fannie Mae and Freddie Mac mortgage-backed securities even under a new home-financing system. Testifying before the House Financial Services Committee, Bernanke said that even under a new system in which there no more of the current mortgage-backed securities may be created, he assumes the current MBS will be protected until such time “as they either expire or are purchased back.”
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