Fannie Mae-No Politics (FNMA)

[navycmdr]

Presidential Candidate Bloomberg Proposes Merging Fannie and Freddie

February 18, 2020 - [e-mail]



Presidential candidate Mike Bloomberg Tuesday morning called for the merger of mortgage giants Fannie Mae and Freddie Mac, a move that could radically alter the current secondary market landscape.

In a message posted on his campaign website, he proposed reforming Wall Street to “put the financial system to work for every American.”

A major component of that plan entails

merging the government-sponsored enterprises

“into a single government-owned mortgage guarantor…”

Bloomberg’s GSE bombshell was just one of several potentially controversial proposals to revamp the nation’s financial system.

The former mayor of New York also says he’ll restore the financial protections imposed by the Obama administration, including strengthening the Volker rule, and returning the Consumer Financial Protection Bureau to its status as envisioned by fellow presidential candidate Sen. Elizabeth Warren, D-MA, and beefing up the powers of the Financial Stability Oversight Council.

Bloomberg would also instate a 0.1% tax on all financial transactions to help fund efforts to address wealth inequality and support other innovations, including a “speed limit” on trading to mitigate the risk of future “flash crashes.”