Privatizing Fannie, Freddie Could ‘Mitigate’ Risks Caused by Government Intervention, Says GAO

September 15, 2009 | 12:38 PM EDT
A Government Accountability Office report says that privatizing the government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac could mitigate the systemic economic risk caused by the federal government’s guarantees to the now-defunct mortgage giants, but that the benefits of privatization could be reversed by government efforts to insure private-sector mortgages.