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Wednesday, September 02, 2020 9:04:07 AM
It's the part in the Charter that says PURCHASE OF OBLIGATIONS BY THE TREASURY. CONDITIONS, (redeemable obligations, interest rate similar to Treasuries, etc). It enabled the SPSPA.
The UST backstop was enacted in exchange for their Public Mission. So, both are linked and you can't scrap the Treasury backstop, signaling like Calabria that it was a "perception" by the market participants.
You said:
So, please Mr. Calabria, don't do anything to end conservatorship because there is safety in the Treasury backstop which is some form of government guarantee.
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