Volcker: US govt must do more to avert meltdown

March 19, 2008

Volcker: US govt must do more to avert meltdown

SINGAPORE: The US government needs to play a larger role in restoring confidence to financial markets on the verge of a meltdown instead of leaving such actions to Federal Reserve, said former Fed chairman Paul Volcker.

Such measures may include Fannie Mae and Freddie Mac, the world's largest mortgage companies, using their lines of credit with the US Treasury to buy some of their own securities to assure investors of such debt, Volcker said.