the focus is on Fannie and Freddie to succeed and be private again. what happens with other banks trying to take market share away is so small its irrelevant. Its just a way for the officials to say there is plenty of room for others in this business to get a chance. it does not weaken Fannie and Freddie. plenty of Mana to go around folks.
Trump has a long term adversarial relationship with the big U.S. banks. My hunch is that he overrides Mnuchin's inclinations on that type of strategy for recap.
It's against his nature as well as being bad politics. For those reasons, I think things are lining up very well for commons.