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Potential Solutions <br /> • Super SIV <br /> — Utter failure—plan was to be operational by end of 2007 <br /> • Rate Freeze <br /> — Extend low-rate period for up to 5 years <br /> • Government Intervention <br /> — Extend Government loan guaranty to sub-prime loans <br /> — Effectively have taken over Fannie Mae and Freddie Mac to insure <br /> certain outstanding mortgages; extend additional credit of US Govt. <br /> — FOMC lowers discount rate and fed funds rate in different amounts <br /> Public Sector Advisors Springsted <br /> Potential Solutions <br /> • Super SIV <br /> — D.O.A—proved to be`too little,too late" <br /> — At estimated$80 billion, it was dwarfed by the multi-hundred million <br /> SIV rollover issues <br /> • Rate Freeze <br /> — Defers underlying issue of affordability and suitability to future date, <br /> doesn't resolve fundamental issue <br /> • Government Intervention <br /> — Potentially rewards bad with the deserving,dilutes consequences <br /> of bad management&poor underwriting <br /> Public Sector Advisors Springsted <br />