The government's efforts to stem the foreclosure crisis may have been hampered by its reliance on Fannie Mae and Freddie Mac, according to a new report.

The two mortgage giants have "a history of profound corporate mismanagement," and were overly reliant on subcontractors, the report by the Congressional Oversight Panel said.

Private businesses "do not take an oath of office, nor do they stand for election. They may have conflicts of interests, are not directly responsible to the public, and are not subject to the same disclosure requirements as government actors," the report said.

Still, the report noted that giving Treasury discretion in the use of private companies meant that the TARP program could be carried out quickly. The Treasury deserves credit for its efforts to improve the contracting process, the report said.

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jkennedy806

The treasury deserves credit, ??? I don't think so, let me re-write this article Hugh, The treasury is run by the fox in the hen house Timmy Geitner. Timmy isn't all that bright on his own, so he outsourced / private contracting firms -- i.e. out of work Wall Street crooks, who used to be his ole buds from the hood on Wall Street. First why is it that you have employees at the fed who can't do their jobs so we bring in contractors. Fire the lazy employees and bring in some unemployed people who will actually work and will be happy and productive to have a job PERIOD. TARP was a complete failure. If it had worked there would be less unemployment now, small business would be thriving on Main Street, and the banks would NOT be foreclosing every other house illegally. TARP did one thing, it saved the banksters from JAIL!!! Cause we all know out here on Main Street USA that politician are so wrapped up in this mess they have to keep the secret in perpetuity !!! If this country ever ever gets to the bottom of this one, there will be alot of scandel in Washington, alot of jail time for those people who robbed the American public of their pursuit of happiness

October 14 2010 at 10:13 AM Report abuse +2 rate up rate down Reply