Better late than never, or two cheers for Hank Paulson

From Willem Buiter’s Maverecon blog

The US Secretary of the Treasury, Hank Paulson, has at last pulled the plug on the two giant GSEs (government sponsored enterprises), Fannie Mae and Freddie Mac.

That it was the big man himself who wielded the knife (or should that be the bazooka?) rather than his sidekick Jim Lockhart, Director of the Federal Housing Finance Agency (FHFA, the regulator of the GSEs), is clear from Paulson’s statement on Sunday, September 7, 2008: “I support the Director’s decision as necessary and appropriate and had advised him that conservatorship was the only form in which I would commit taxpayer money to the GSEs.”

What was decided? Continue reading “Better late than never, or two cheers for Hank Paulson” »

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