Bernanke: GSEs ‘Failing’ on Affordable Housing 

Fed chairman Ben Bernanke offered his view on GSE reform yesterday, saying in remarks to a community banker’s convention in Hawaii that Fannie and Freddie’s portfolio holdings do little to promote homeownership and lack a clear focus on fostering affordable housing. The chairman’s comments highlighted what he sees as a need for both Fannie and Freddie to “refocus” on providing affordable housing to millions of Americans, particularly in light of ongoing troubles in the subprime credit sector.