Fannie Mae-No Politics (FNMA)

[navycmdr]

Today's testimony is focused on the 2012 amendments of the bailout plan, the "net worth sweep." DeMarco is providing more details this time around about the deliberations over implementing the sweep, which is likely due to him being called as a defense, and not joint, witness.

— Katie Buehler (@bykatiebuehler) August 8, 2023

FHFA attorneys specifically asked DeMarco about the so-called June 25, 2012, "Stegman memo." He refutes ever saying the highlighted portion, claiming Stegman wasn't at the meeting in question.
"I do not recall what was discussed that would've led Stegman to write that," he said. pic.twitter.com/mabBAVDDoA

— Katie Buehler (@bykatiebuehler) August 8, 2023

DeMarco added it "would not be prudent" to scrap plans for the "net worth sweep" based on the positive net profits Fannie & Freddie recorded in the first two quarters of 2012.
"There's no certainty after two quarters that that's indicative" of what's to come, he said.

— Katie Buehler (@bykatiebuehler) August 8, 2023