Replies to post #302154 on Fannie Mae-No Politics (FNMA)

[Tincupx]

Doesn't hurt either.

[Letgoofmyfannie]

banking industry could support slimmed-down Fannie & Freddie.

That sounds like Business As Usual to me, time to get back to what we had before with some fixes:


"" Such a proposal has some backing in the business community, which Royce said was ready to engage and lend again given the right opportunity. The banking industry could support a slimmed-down Fannie Mae and Freddie Mac.

"Love? Maybe. Like? Sure," said Joseph Pigg, senior vice president and senior counsel of the American Bankers Association. "It's definitely a better vision of the future than where we are today. … Right now we view them as pretty much the only game in town."

Panelists—which included Julia Gordon, senior director of housing and consumer finance at the Center for American Progress, and Andrew Jakabovics, senior director of policy development and research at Enterprise Community Partners—also discussed the proper role of a regulator to make sure government agencies providing loans didn't take on too much risk, repeating the same conditions that led to the financial collapse.

"If you're going to create that moral hazard … you have to have a regulatory system that controls the risks," said Mark Calabria, director of financial-regulation studies at the Cato Institute. ""


--Remember F&F were about 40% of the Market Pre-HousingBubbleCrisis. Prior to the Conservatorship. FHFA was OFHEO (run by James Lockhart) and they failed miserably in their role as Regulators due to the Meddling of Congress etc.

[Dollars1]

That's all Royce there. He continually says Fannie, Freddie haven't repaid the Treasury.

"Contrary to what Fannie and Freddie apologists claim, the GSEs have yet to repay any of the taxpayer-funded bailout funds they received, which makes today's announcement by the FHFA outrageous. Money coming in from the GSEs should go to the taxpayers instead of a slush fund for ideological housing groups to play around with.”

http://royce.house.gov/news/documentsingle.aspx?DocumentID=397623

[Donotunderstand]

Article does not help?

Well
Relative to kill FNMA and dismantle and replace with GNMA or some new 100% available to all GOV reinsurance (and wind downs too)

A "smaller role" IS A ROLE

so maybe it helps?

Now compared to F and F being freed to go ahead with past oligarch stature it does not help

But the oligarch stature was a given to be killed

And lets see if those bond offering where F and F put on the back of the private sector a ton of the risk that F and F carry can be increased and viewed as a major part of private sector and yes a reduction in the role of F and F as they do not insure those