WASHINGTON, June 13 A senior U.S. Treasury
official on Friday rejected proposals to recapitalize Fannie Mae
and Freddie Mac, saying it would take at
least 20 years to make sure they were adequately funded and that
in the meantime taxpayers would potentially be on the hook.
In remarks prepared for delivery to a housing conference,
Treasury Under Secretary Mary Miller repeated the Obama
administration's call for winding down the two
government-controlled mortgage finance firms.
"Critics of reform would suggest that we can simply
recapitalize the GSEs and avoid difficult decisions around
creating a new system," she said. "Even if truly rehabilitating
the GSEs were possible, recapitalizing them adequately would
take at least 20 years."
(Reporting by Timothy Ahmann; Editing by Chizu Nomiyama)