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Tuesday, May 16, 2017 11:50:05 AM
Last week, Watt told members of the Senate Banking Committee
the situation is untenable and that he may tell Fannie and Freddie
to stop payments to the Treasury to let them build capital.
Ryan said he couldn’t specify how much capital would be needed,
but that it would be a relatively small amount to deal with the
risk of short-term losses.
A 2015 law that expires next year forbids the Treasury Department
from selling its stakes in the companies.
Watt’s term ends in 2019, so if he remains against releasing the companies
through administrative steps, that option might be off the table
until he leaves.
(OR GETS FIRED for allowing a TREASURY DRAW to take place under his WATCH)
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