Reply #46: did Snow-job just slip from the party line

[UpInArms]

Fannie Mae woes show strong regulator needed-Snow

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6306876

MECHANICSBURG, Pa., Sept 22 (Reuters) - U.S. Treasury Secretary John Snow on Wednesday said a government review that found Fannie Mae (FNM.N: Quote, Profile, Research) used inappropriate accounting to iron out earnings volatility reinforced the need for a stronger watchdog for government-sponsored enterprises.

"These reports ... if they're credible, they underscore the importance of a strong safety and soundness regulator," Snow told reporters following a roundtable discussion with businessmen here.

Earlier on Wednesday, Fannie Mae's board said a government review charged that the country's No. 1 mortgage finance company had used improper "cookie jar" accounting to smooth earnings, and called into question past financial results.

"It's important to have a strong GSE regulator ... GSEs are a very important component of our national housing market, national mortgage market, and because they are such large entities they are also an important part of our total financial system," Snow said.

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Isn't that against the deregulation mantra of no governmental intervention for the free markets?