Fannie Mae and Freddie Mac are the real 'black holes' in thefinancial regulation bill before Congress and they both need to be addressed, Robert Pozen, Chairman of MFS Investment Management, told CNBC Monday.
"They were too political volatile to handle and are not in the bill," said Pozen who is a former vice chairman of Fidelity Investments. "But we need to get to them. Fannie reported an $8 billion loss in the first quarter but the costs to them for the loans in the footnote of the report, were over $100 billion. The $8 billion may turn out to be just a drop in the bucket."