Too bad Toomey is retiring, this whole 14 year CONservatorship really doesn't fly with him. Unfortunately, my Senator, Mark Warner probably told SM to keep the Sweep going through the Liquidation Preference when they had dinner and went bike riding down by the Potomac in the previous administrations final months.
One thing that I will say is during the 14 year CONservatorship, Fannie and Freddie have become even more irreplaceable in the Secondary Mortgage Market and the federal government implicit guarantee on the $7T+ of GSE MBS has apparently become a nice tool for the Federal Reserve to manipulate a traditionally difficult area of the yield curve, LONG TERM INTEREST RATES!
So, I don't think these giants are going anywhere anytime soon and YES THEY NEED SOME 1ST LOSS PRIVATE CAPITAL, thanks to the transfer of $100's of billions into the Treasury IN RETURN FOR NOTHING!
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