The moral hazards caused by the weak regulation of Freddie Mac and Fannie Mae were: a. Non-existent as the Securities and Exchange Commission took over the regulation of both of them. b. Individuals could obtain a higher interest rate for risk free investments. c. There was an implied government guarantee without any restriction on risk taking. d. Non-existent as Freddie Mac and Fannie Mae were both for profit institutions who disclosed their activities to the stock market.
