Fannie Mae & Freddie Mac: Too Big to Wind Down?
But not too big to replace the board with honest people.
This has nothing to do with people running the companies but with acts of Congress. The Community Reinvestment Act of 1998 made it a law that a certain, ever increasing, proportion of loans must be (bad) loans given to those that cannot afford them. That is the sole reason we had a housing bubble and crash. That is why Freddie and Fannie hold so many bad loans. Law is law, and any other management team would have to abide by it.