U.S. President Barack Obama is expected to announce an outline of what he’d like to see happen to mortgage companies Fannie Mae and Freddie Mac when he releases his fiscal 2011 budget proposal, likely early next month. … Following are some scenarios, gleaned from comments by policy-makers, analysts and the GAO report. FULL NATIONALIZATION This might be the easiest option and would return the companies to their origins as a government tool to nurture the housing market. Some analysts see the Obama administration’s Christmas eve move as a signal this is the direction they are leaning, but top White House economic adviser Lawrence Summers told the Wall Street Journal in late December “that certainly would not be the direction I would expect.”
Reshaping Fannie Mae and Freddie Mac
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