Friday, January 28, 2011
Fannie, Freddie defense costly | Jan. 25, 2011
Subhead here and all that and more
The article about continuing costs to defend previous executives of Fannie and Freddie fails to make clear that the allegations of accounting irregularities and fraud were associated with the capitalist profit-making aspects of these public-private hybrids.
Given the anti-government climate being promoted by those elected with Tea Party backing, it is important to clarify that these accounting irregularities were used to exaggerate profits, which in turn boosted stock prices and the earnings of these executives whose income was tied closely to stock market numbers.
In other words, the legal costs have nothing to do with Fannie and Freddie operating as quasi-governmental entities pursuing public objectives, and everything to do with pursuit of profit and income in the private sector.
Roland Moy, St. Petersburg
Family embraces new guests Jan. 9, 2011
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