Revelations of accounting irregularities and excessive risk-taking by the home mortgage giants Fannie Mae and Freddie Mac have led to calls for various reforms, in order to protect taxpayers who would likely have to pay the costs if one or both of the firms were to become insolvent. The various...

This commentary focuses on two specific issues. The first asks, What are the market failures that actually create the need for the public regulation of bank safety and soundness? The second issue concerns the safety and soundness issues created by the two mortgage government-sponsored...

The transformation of the planned economies of central and eastern Europe to market economies has focused on economic stabilization and liberalization, privatization, and financial sector development. The housing sector and the mortgage market have been factors in each of these processes but not...