Fed's Greenspan on government-sponsored enterprise

In the speech 'Government-sponsored enterprises' given on 19 May Alan Greenspan of the Federal Reserve levelled criticisms at the two mortgage giants Fannie Mae and Freddie Mac.

"The Federal Reserve Board has been unable to find any credible purpose for the huge balance sheets built by Fannie and Freddie other than the creation of profit through the exploitation of the market-granted subsidy," Greenspan said in a speech that he delivered via video link to a housing conference hosted by the

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