Ralph Nader Calls for Investigation of Treasury's Handling of GSE Conservatorship
In a letter to U.S. Department of the Treasury Inspector General Eric Thorson; Sen. Tim Johnson, Chairman of the Senate Committee on Banking, Housing and Urban Affairs; and Rep. Spencer Bachus, Chairman of the House Financial Services Committee, Ralph Nader has raised a variety of questions about the manner in which Treasury Department officials established the conservatorships for Fannie Mae and Freddie Mac and the way the Federal Housing Finance Agency (FHFA) delisted the companies from the New York Stock Exchange (NYSE). "The Treasury Department Inspector General and Congressional Committees with appropriate jurisdiction are in the best position to conduct a thorough investigation of the way Fannie Mae and Freddie Mac common shareholders have been used and abused by the Treasury Department," said Nader. Nader noted that high-ranking government officials, including former Treasury Secretary Henry M. Paulson, Federal Reserve Chairman Ben S. Bernanke, former Sen. Chris Dodd, Rep. Barney Frank, and former OFHEO Director James B. Lockhart, made positive comments about the financial health of Fannie Mae and Freddie Mac in July of 2008, just two months prior to the creation of the conservatorship. Click here for a copy of Nader's letter to the Treasury.