Alistair Darling should reject setting up an American-style mortgage agency as a way to give a long-term boost to the crippled housing market, according to Sir James Crosby, the former chairman of HBOS, The Times reports.
Sir James, who was commissioned by the Chancellor to find ways to get the stagnant mortgage market running again, will deliver his interim report today. In it, he is expected to reject any suggestion that the Government set up a mortgage agency similar to Fannie Mae and Freddie Mac, the two troubled American companies that nearly collapsed recently. Much has been said about the case for launching an American-style agency, but it seems unlikely that it would be right to tackle Britain's problems with last century's solution, particularly given the time that it would take to create any suc...
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