Should Fannie Mae Be Privatized?

Fannie Mae has been in government conservatorship since 2008, but the debate regarding whether Fannie Mae should be privatized or owned by the government is an ongoing conversation and seems to be complicated to implement (www.knowledge.wharton.upen.edu). After researching Fannie Mae during the financial crisis, I have concluded that Fannie Mae should be privatized. This tactic will keep the company from forming a monopoly and ensure an even playing field with other financial institutions. It would be beneficial for Fannie Mae to slowly phase into the private sector. The government could slowly reduce its role in the company and the management teams should fill in the empty spaces. Investors would be confident in Fannie Mae, knowing that they are easing back into privatization and not winging it (knowledge.wharton.upen.edu).
My Privatizing Suggestions …show more content…
It’s impact on Fannie Mae changed the company, but it is time to reevaluate those changes and make some modifications. It is safe to say that Fannie Mae has learned from their flawed business mistakes in 2007-2008 (Reiss, David, 953). I believe they are ready to take the rein and begin making decisions for their best interest, instead of decisions that the government forced upon them for the last 9-10 years. I would suggest that the government keep a close watch on the company and on the housing market and be there as a safety net if needed. Hopefully they would be able to predict another economic crash and step in before Fannie Mae has another chance to fail

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