Saturday, July 25, 2020 10:15:15 PM
The Parrot, Ryan and Zandi paper won’t be the last to make the point that Calabria’s decision to impose a bank capital standard on Fannie and Freddie is without justification and contrary to the readily observable risks of the one business they’re permitted to do, and if insisted upon will have easily predictable negative consequences for mortgage rates, mortgage availability and systemic financial risk.
I suspect he’ll get the message.
And I also wouldn’t rule out Laurie Goodman and her UI colleagues doing a substantive analytical comment similar to what they did on the previous FHFA capital rule.
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