GSE Reform Remains Important Policy Ike Brannon is a senior fellow at the Jack Kemp Foundation
The novel coronavirus has wreaked havoc with financial markets and forced the Federal Reserve to resort to extraordinary measures to provide liquidity and ensure that markets do not seize up and exacerbate an already-difficult economic situation.
The timing of the Fed's intervention has proven to be somewhat unfortunate, at least from the perspective of housing finance policy, as it occurred shortly before the Federal Housing Finance Agency planned propose a rule that would allow Fannie Mae and Freddie Mac, the government-sponsored entities that help inject liquidity the housing market by purchasing, packaging, and then selling the mortgage-backed securities, to retain capital and begin to take steps towards leaving their government conservatorship.
"I'm not condemning anyone from making money! Pref's and common are in the same boat and should be treated the same. Pref's are hung up on a conversion because they know commons will have more potential after things are more known and accomplished. Aka release"
Very good point. All along JPS holders are peddling the narratives that JPS are better investment than CS, but at the same time JPS holders want to convert JPS to CS.
Why would any conservator or company management agree for this?
How does it benefit the companies in just giving way cheap Common shares when companies can buy JPS at 60% to 70% discount from the markets?
Even when companies are liquidated, JPS holders get nothing because SPS take everything. Can anyone tell us how JPS are better investments?
News 
Market Data 
Discover 
