“Reasonably fast” That’s what Secretary of the Treasuryd esignate Steven Mnuchin told the press on November 30, 2016, when asked about the new administration’s plans to end the conservatorships of Fannie Mae and Freddie Mac.
That was three years ago – and granted, more progress has been made in the past five months than in the past five years. But in the meantime, more evidence has been uncovered; more damning emails have come to light; more outright lies by government officials (of both parties) have been exposed. (And as pointed out herein, more shoes are likely to drop.)
As the court cases proceed to their inexorable conclusion (I say “inexorable” because the truth of what happened is utterly indefensible), the Administration risks losing a golden opportunity. Many large institutional investors – sitting on record-high piles of cash – are perched on the sidelines, ready and willing to help recapitalize Fannie and Freddie. But they will do so only if they can be assured that what happened to the previous shareholders won’t happen to them; i.e., that the government’s larcenous behavior will not be repeated.
Gary E. Hindes December 5, 2019 646-467-5242 gary.hindes@delawarebayllc.com
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