"We will not support returning Fannie and Freddie to the role they played before conservatorship, where they fought to take market share from private competitors while enjoying the privilege of government support"

In his declaration, Timothy Geithner is referring to the monetary entities Fannie Mae and Freddie Mac, which are government-sponsored enterprises (GSEs) essential in the U.S. real estate financing system. Pre-conservatorship, these organizations were integral in broadening homeownership by buying home loans from lending institutions, consequently renewing their funds to release more loans. Nevertheless, their competitive practices in the mortgage market and the implicit support of the U.S. federal government raised substantial issues.

Geithner's comment underscores a vital stance relating to the future of these entities post-financial crisis. He stresses a basic opposition to going back Fannie Mae and Freddie Mac to their pre-2008 functional models. The phrase "returning Fannie and Freddie to the function they played before conservatorship" mentions their pre-crisis business practices, where they strongly sought to dominate the mortgage market. This technique was troublesome as these business intended to take full advantage of market share and revenues, often at the cost of financial stability, partially due to the incorrect market perception of their securities being implicitly government-backed.

"Fought to take market share from private competitors" suggests that Fannie Mae and Freddie Mac's strategies were frequently cutthroat and disproportionately controlled the home loan market. This supremacy was underpinned by their capability to access less expensive funding due to the presumption of federal government assistance, producing an uneven playing field versus purely personal entities. This competitive edge might have added to risky behavior, playing a role in the 2008 financial crisis.

Geithner's usage of "benefit of federal government assistance" indicate the implicit warranty that these institutions had, which supplied them unequaled benefits over private competitors in terms of funding expenses and market perception. The statement shows a clear objective to revamp the framework within which Fannie Mae and Freddie Mac operate, making sure the mortgage market is stable, competitive, and not overly dependent on governmental support that distorts market characteristics and potentially incentivizes careless business practices.