Disregarding warnings from his managers that lenders were making too many loans that would never be repaid, [CEO Daniel Mudd] steered Fannie [Mae] into more treacherous corners of the mortgage market, according to executives. For a time, that decision proved profitable. In the end, it nearly destroyed the company and threatened to drag down the housing market and the economy. (New York Times, Sunday)
The F in Fannie stands for federal.
FEE Timely Classic
Bailing Out Statism by Sheldon Richman