Search
 

Can the GSEs Reduce Fed Debt Pressure?

SAN DIEGO-Gordon Gerson of Gerson Law Firm here tells GlobeSt.com's Carrie Rossenfeld that he is hearing Fannie Mae and Freddie Mac's profitability may be high enough to prevent raising the debt ceiling.

By Carrie Rossenfeld | Updated on May 13, 2013

SAN DIEGO-News sources are reporting that Fannie Mae and Freddie Mac earned record profits in the first quarter, prompting some experts to say that these profits may be used to halt raising the federal debt ceiling. Gordon Gerson of Gerson Law Firm here tells GlobeSt.com that he agrees this could be the unanticipated outcome—unanticipated because of how much scrutiny and criticism the GSEs have undergone recently.

“It’s clear that we’re on the cusp of taxpayers being paid back for the bailout or backing up of Fannie Mae and Freddie Mac, and what’s more remarkable is that despite some of the voices saying we need to restructure Fannie Mae and Freddie Mac, at the present time they’re a savior in the federal government, which is something I don’t think any of us expected,” says Gerson. “It’s ironic that Fannie Mae and Freddie Mac, which have been beaten up publicly for many years, are now going to be our source to avoid more borrowing because of their profitability. It’s an unusual turn of events.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.