Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

https://www.nationalreview.com/2023/07/mark-calabria-wants-the-government-to-follow-the-law/

"And the conceptual way to think about this is that markets and government have created an implied guarantee behind them, the GSEs, the government-sponsored enterprises, and that creates moral hazard just as you see with deposit insurance and other things. And so again the job of the agency is to try to contain that moral hazard, to protect the financial system and protect the taxpayer. So it’s really a safety and soundness regulator and you should envision it as an attempt to try to control risk that government itself has created."

"We borrowed from the framework at FDIC. So if you think about the recent bank failures that were taken into conservatorship or bridge banks, that’s largely what we were trying to reproduce. And it wasn’t meant to be never-ending. It was meant to be: the companies fail, you right-size the balance sheets, you clean them up and you get them back out. So it wasn’t meant to be an endless bailout and wasn’t meant to be endless government control."

"We did a lot of work and if it wasn’t for Covid and the election, we would have gotten Fannie and Freddie reprivatized. The clock ran out on us and obviously the pandemic took over many of our agendas."

"But you know, the plans are there on the shelf. A lot of work was done when I was there. And so I am hopeful that the next Republican administration will finally fix these strange creatures."

"I think the Biden administration, and to a degree the Obama administration, looked at this partly as: We have them now and we’re going to use them for whatever purposes we want. And they’ve become kind of off-budget slush funds, if you will, and they’ve pursued agendas without a real basis in the law. And unfortunately, nobody’s really got an avenue to sue to stop the administration. So it’s one of these things like, “Well, who’s got standing? We’re going to do it anyhow.”