Replies to post #500235 on Fannie Mae-No Politics (FNMA)

[10bambam]

The backlash to Otting’s comments was swift, with the White House issuing a Tuesday statement that said the administration would work with Congress on a plan for ending the government’s decade-long control of Fannie and Freddie.
Shares Surging
Speculation that Treasury and the FHFA might unilaterally let Fannie and Freddie build up capital and then release the companies had prompted the companies’ shares to surge this month. Hedge funds and other investors were hopeful that any plan would allow shareholders to get their hands on Fannie and Freddie’s profits, which now go to the Treasury.
Otting’s Wednesday letter is the latest sign that a revamp that frees Fannie and Freddie probably won’t happen anytime soon.
The Trump administration’s push to end the conservatorships will likely start with the White House calling on federal agencies to put forth ideas for a legislative and regulatory overhaul of the housing-finance giants, Bloomberg reported Tuesday, citing people familiar with the matter.
The White House may outline a broad set of recommendations, such as increasing competition for the companies and protecting taxpayers from losses, and then request that Treasury and the Department of Housing and Urban Development propose plans for implementing them, said the people.
To contact the reporter on this story: Elizabeth Dexheimer in Washington at [e-mail]
To contact the editors responsible for this story: Jesse Westbrook at [e-mail], Gregory Mott
For more articles like this, please visit us at bloomberg.com

[GVInvestments]

Good news. Good things happening.