WASHINGTON, DC-Measures that the government has taken to repairthe real estate finance markets are, in fact,having an impact--but more work needs to be done, FDICchairperson Sheila Bair told the audience at ULI’sannual conference, being held here.
“Yes, we have achieved stability in the housing market, but atthe price of unprecedented government backing,” she said. Goingforward the US will have to decide which measures to continue to emphasize--and which need to be discarded.
The implicit guarantee of government backing that the GSEsreceived almost up until they were taken intoconservatorship is an example of the latter, Bair said.“We have two choices for GSE reform: either the government should provide explicit support, and charge forthat support, which also must be actuarially sound, orit should be left strictly up to the private sector. Butthe halfway path we took was clearly a big mistake.”
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
