Mr. Calabria ........
You were quoted at the AEI conference on 10/16 as saying:
"My job is to fix them (the GSE's) and get them out" (of Conservatorships).
Specifically, what is it at Fannie Mae and Freddie Mac that needs "fixing"? Their return to profitability which has resulted in Treasury reaping more than $100 BILLION in PROFITS from these two entities?? Seems like both companies must be doing really, really well to be racking up $15 to $20 BILLION in net profits each year.
So what exactly needs to be fixed? Their mortgage default numbers are at historical lows. Over the past few years, their underwriting has included Credit Risk Transfers which has shifted a significant amount of first dollar default risk to the private sector, and lessened "taxpayer risk during a housing downturn." In summary, the Government Sponsored Entities (GSE's - Fannie Mae and Freddie Mac) should really be referred to as "Government Shackled Entities" --
It's the GOVERNMENT THAT NEEDS FIXING, not Fannie Mae or Freddie Mac. Get them out of Conservatorships TODAY MR. CALABRIA, YOU have the authority to do this, WITHOUT Congress. They DONT need FIXING, they need to be unshackled, and returned to private operations with Government oversight. You WONT lose your job, the FHFA won't go away by releasing Fannie and Freddie, so DO YOUR JOB and RELEASE THEM TODAY, enough of all the BS about needing a capital rule or "negotiating" with Treasury, it's ALL BS! And having to "fix" them before releasing them is the biggest BS of all!!!
