Fannie Mae-No Politics (FNMA)

[Ottovip52]

'In the recent House Financial Services Committee hearing, Sec Yellen acknowledged that she is not “knowledgeable” and “not up to speed” about the Treasury’s investment, particularly the possibility of monetizing its warrants, in the GSEs. It is almost unbelievable that she would be not “knowledgeable” about this, but I guess it confirms that the WH has not had any active discussions with the Secretary (or possibly anyone at Treasury) about administrative action.

The comment comes in response to a question from Rep. Fitzgerald at the 4:34:45 mark.

Hearing Entitled: The Annual Report of the Financial Stability Oversight Council (youtube.com)'
jtimothyhoward comment:
'I have been saying for some time that if the Biden administration were to create a path for Fannie and Freddie to exit conservatorship prior to this year’s presidential election, the initiative for that would have to come from outside FHFA and Treasury, i.e., someone at the NEC, CEA or potentially the Office of the President. But the fact that Yellen would say she is not knowledgeable about the financial issues related to Treasury’s involvement with the companies is a strong indication that no senior economic official in the administration has yet spoken with her about this, which they obviously would need to do to create a workable exit plan. So that’s not a great sign. The clock is ticking on this, and there is a lot of work that will need to be done in the dwindling amount of time left do it.'