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Former Fannie, Freddie Heads Offer Defenses

Four former heads of Fannie and Freddie are testifying before Rep. Henry Waxman's (D-Calif.) oversight committee right now on their role in helming the two mortgage giants as they entered the sub-prime market and the subsequent damage caused to each.

Here's a summary of the testimony of each:

-- Richard Syron, Freddie chief executive from 2003-2008: By law, Freddie Mac is not a diversified financial services company and is limited to residential mortgages. Any company limited to that line of business alone would have been hurt during the mortgage meltdown.

-- Daniel Mudd, Fannie chief executive from 2005-2008: Fannie serves too many masters and needs to have its charter reworked.

-- Leland Brendsel, at Freddie from 1982 to 2003: Freddie plays a key role in the housing market, gave breaks to potential homeowners no other lenders would.

-- Franklin Raines, Fannie Mae chief executive from 1999-2004: Fannie and its 2004 accounting scandal are not to blame for the current crisis.

-- Frank Ahrens
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By Frank Ahrens  |  December 9, 2008; 10:59 AM ET
Categories:  The Ticker  | Tags: Fannie, Franklin Raines, Freddie, Waxman  
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