Fannie Mae needs independent regulator-U.S.'s Snow

Fri Sep 24, 2004

NEW YORK, Sept 24 (Reuters) - the latest troubles at Fannie Mae (FNM.N: Quote, Profile, Research) , the No. 1 U.S. home funding company, show the need for a truly independent regulator to cover government-sponsored enterprises, U.S. Treasury Secretary John Snow said on Friday.

Talking to reporters, Snow was asked about Standard & Poor's decision to put Fannie Mae's subordinated debt and risk-to-government ratings on credit watch for a possible downgrade.

Snow said the move reinforced the need for better regulation.

"We'd like to see the regulator and the GSE's removed as far as possible from politics. To accomplish that, we think the regulator ought to be self-funded rather than funded through the appropriations process," said Snow.

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