I read his 2016, 7 points on GSE reform paper, and some of his ideas weren't as whacked as I was thinking they might be as part of the "usual suspects" gang.
For instance he calls for the GSE's to be placed in the FISC category, and just like the tbtf banks, they will have to hold 5% Capital (currently MC is on FSOC and I bet this is EXACTLY what they are talking about).
Why do you think MC wants to over capitalize them with all the collateral consequences, lower ROE, higher gf's?
Also, in his paper, he believes they should open the government guarantee up to more competition, just as outlined in the White House housing reform plan and advocated by MC on more than 1 occasion.
Finally, I think MC might explore his powers as contoller over the FHLB's, where apparently they have some sort of program that Alex started when he was over there. I know MC went to at least 1 meeting on this.
Here are the 7 points:
I suggest seven steps to reform American housing finance:
1. Turn Fannie and Freddie into SIFIs at the “10% Moment” 2. Enforce the law on Fannie and Freddie’s guarantee fees 3. Encourage skin in the game from mortgage originators 4. Form a new joint FHLB mortgage subsidiary 5. Create countercyclical LTVs 6. Reconsider local mutual self-help mortgage lenders 7. Liquidate the Fed’s MBS portfolio
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