Yesterday we mentioned the Washington Post’s report about how the White House planned to implement a good bank/bad bank scheme for Fannie Mae (FNM) and Freddie Mac (FRE), essentially freeing up healthier GSEs to get back out there.
It sounds as though it was just a trial balloon. The White House is quickly walking back on the story.
WaPo: “The story out today is light years ahead of any decision-making process here,” White House Press Secretary Robert Gibbs told reporters, referring to a story Thursday in The Washington Post. “Safe to say that many senior administration economic officials learned of this proposal sometime this morning at the foot of their driveway.”
But an e-mail, dated Wednesday, between the Treasury Department and the White House’s National Economic Council said that the bad bank approach has been the subject of policy papers distributed across the administration.
So there you go. Even if the White House wanted to do this, it’ll probably be a long, slow process, and not something easily done in the middle of all kinds of other fights.
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