Fed's Bernanke on GSE portfolios, systemic risk

In the speech 'GSE portfolios, systemic risk, and affordable housing' given on 6 March Ben Bernanke of the Federal Reserve said large investment portfolios held by mortgage finance companies Fannie Mae and Freddie Mac may imperil the broader economy and should be "anchored" to their affordable housing mission.

Investments by Fannie and Freddie "should be anchored to a clear and well-defined public purpose," Bernanke said, adding: "An obvious and worthy candidate is the promotion of affordable

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