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Tuesday, June 23, 2020 8:20:26 AM
It is also instructive that Treasury did NOT seek to maximize profit in the Citi case, since it had policy goals that went in other directions
Michael Kao has been making this point, and exploring its import, about the FnF case:
Re: Fannie/Freddie-Forest vs. Trees. Imho, mechanics of recap/release less likely to be influenced by maximizing gov profit ("trees") and more likely to follow the "forest" of attracting private, 1st loss capital while preserving the affordable housing mandate & 30 yr mortgage.
— Michael Kao (@UrbanKaoboy) June 22, 2020
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