March 23, 2010
US Treasury Secretary Timothy Geithner on Tuesday swatted aside pressure for a swift reform of troubled government-backed mortgage giants as data pointed to a still struggling real estate market.
- A d v e r t i s e m e n t
Geithner told Congress any restructuring of lenders Fannie Mae and Freddie Mac, which received a 100-billion-dollar-plus government bailout at the height of the housing crisis, “must be done as part of a reform of the wider housing finance system.”
Facing pressure from Republicans for a quick unwinding of government’s role in the market, Geithner argued reforms would “take several months” to develop and should only be “enacted and executed at a time of greater market stability.”
“Private capital has not yet returned to provide the amount of funding that would be needed to allow families to get a mortgage to buy a new home or to sensibly refinance the house they already live in,” he said.