Fannie Mae-No Politics (FNMA)

[bcde]

"Watt's two minimum alternatives were $103.5B and $139.5B. That would mean that ACG things Calabria's minimum capital standard will come in around the higher of those. I don't think that bodes well for the idea that Calabria will set lower capital standards than Watt."

If Watt's capital rules (Bank like capital) were appropriate then why would MC waste his time revising them.

MC's new revised capital rules have to be based on stress test results (far less than $45B) as basis for new capital rules. In worst case scenarios it can not be more than double.

In addition there can be legal challenges to any capital rules that are not based on industry standards (monoline insurance business model vs bank business model).

Any burdensome bank like capital rules will make housing loans un-affordable and bring down the the housing markets and economy. Administration and most lawmakers will oppose any capital rules that do not support Gov/administration's affordable housing policies.

One needs to just check with powerful fed officials about their recent experience keeping interest rates high. Will a weak agency like FHFA make any big policy decisions that will bring down the the housing markets and economy?

Even small changes that affect economy adversely are ruled out leave alone any radical changes that affect economy adversely. Expect that everything will happen to just keep the economy growing.