Opinions are now divided on whether the the Federal National Mortgage Association (or ‘Fannie’) and the Federal Home Loan Mortgage Corporation (or ‘Freddie’) should remain in their present form, putting a lot of taxpayers’money at risk. The bailing–out role now played by the Federal Reserve has been sternly criticised and it has been questioned whether this should be allowed to go on and on in the foreseeable future, transforming US capitalism into social capitalism. The event has also affected the UK capital market, with serious erosion of market capitalisation. But, is the UK home market an innocent bystander in the whole scheme of things? That is is the subject of this article.
Business Law Review