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Wells Fargo Chief Calls for Shared Risk 

Apr 05, 2011By

In an article in Fortune, Wells Fargo President and CEO John Stumpf weighs in on fixing the mortgage mess and winding down Government Sponsored Entities (GSEs), Fannie Mae and Freddie Mac.  In acknowledging that the role of the GSEs need to be reduced, Stumpf suggests change in the mortgage markets need to balance risk among the players.   The secondary mortgage market, Stumpf writes was created because banks lacked the capacity to hold the amount of mortgage debt, currently $11 trillion, on their balance sheets.  The goal of the GSEs was to help the secondary market function fairly and

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