Industry Leader Warns of Opening 'Pandora's Box'

In a recent American Banker op-ed entitled "GSEs Too Big? What About the Rest of the $1T Club," [PDF 47K] Kenneth Guenther, former president and CEO of the Independent Community Bankers of America, warned that Fed Chairman Greenspan may have "opened a Pandora's Box" in expressing support for the pending GSE legislation. Guenther stressed that curbing Freddie and Fannie's portfolio growth may ensure a similar fate for other large financial institutions.