Fannie Mae-No Politics (FNMA)

[Guido2]

Calabria justified the need for the living will. He tried to score points with the Biden administration by saying Obama signed the the Dodd-Frank Bill that introduced the living will for TBTF financial institutions. He couldn't find another Democrat to compliment, so he went all the way back to Lyndon Johnson. As a nod to Warren, he mentioned that Wells Fargo's living will was reject 4 times before the 5th version was accepted.

All 3 penalists didn't give much importance to the living will. Their concern is that the implicit guarantee be replaced by the explicit guarantee.

Goldin sees nothing wrong with continued conservatorship. If they are released, he would like to see competition. Aaron, the moderator and Erin, penalist see them being more involved in social programs. Aaron believes they are to blame for African-Americans owing only 4% of the homes in the USA. Calhoun sees them as utilities. He believes that investors are buying Fannie and Freddie MBS only because the SPSPA is in place. For an expert, he conveniently forgets they operated successfully for 70 years without the agreement.