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More Bad News for Structured Finance?

While politicians scramble to preserve <i>Fannie Mae</i> and <i>Freddie Mac</i>, more trouble for financial markets looms on the horizon. Proposed changes to accounting rules for securitization vehicles could decrease the significant role of structured finance in providing the liquidity that sustained recent economic expansion.

25 minute read August 25, 2008 at 10:07 AM
By
Michael J. Venditto
More Bad News for Structured Finance?

For the past several months, fears about the future of Fannie Mae and Freddie Mac have been a dark cloud over the economy. These government-sponsored enterprises are securitization machines, helping sustain a secondary market for the huge volume of residential mortgages that are originated each year.

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