MINNEAPOLIS, May 10 (Reuters) - Minneapolis Fed President Narayana Kocherlakota on Monday said he doesn't have a preferred plan for reforming Fannie Mae and Freddie Mac , but there needs to be a way to prevent them from "the kind of risk-taking that was socially undesirable" that was allowed by their implicit government debt guarantee. "In the long run, I think that we would rather have private securitization markets providing this kind of service that Fannie Mae and Freddie Mac are providing currently," Kocherlakota said after a speech at the Economic Club of Minnesota. "But in the current situation that we are in, we have to plan appropriately for the transition somehow." He was responding to a question about giant mortgage lenders Fannie Mae and Freddie Mac, which were taken over by the government to prevent their collapse in 2008. (Reporting by Ann Saphir, additional reporting by David Lawder in Washington, Editing by Chizu Nomiyama) Keywords: USA FED/KOCHERLAKOTA (firstname.lastname@example.org; +1-312-408-8592; Reuters Messaging: email@example.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.
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