Secretary Lew’s Consumer Financial Protection Bureau: GSE’s now part of US Government

Recently, we learned from the Congressional Budget Office that, “…Fannie Mae and Freddie Mac are now owned and operated by the federal government…”

https://www.cbo.gov/sites/default/files/cbofiles/attachments/49765-Housing_Finance.pdf

To add to that view, the US Treasury Department via their CFPB states, “Historically, they were (emphasis mine) private companies operating with government permission and under government regulation. In late 2008, following the financial crisis, the U.S. government took over operations at both companies.”

http://www.consumerfinance.gov/askcfpb/1959/what-are-fannie-mae-and-freddie-mac.html

http://www.treasury.gov/initiatives/Pages/cfpb.aspx

However, the FHFA Office of Inspector General disagrees with the CBO and Treasury:

Is a conservatorship temporary or permanent?
There is no inherent duration in a conservatorship. The organic statute or order creating the conservatorship defines its goals, operations, and conditions for existence, differing from the FDIC receivership context, which does not anticipate a return to business. In this case, the Federal Housing Finance Agency has stated that the conservatorship will terminated upon successful completion of its plan to restore the companies to safe and solvent condition (“Fact Sheet – Questions and Answers on Conservatorship”. http://www.fhfa.gov/Media/PublicAffairs/Pages/Fact-Sheet-Questions-and-Answers-on-Conservatorship.aspx)”

http://fhfaoig.gov/LearnMore/FAQ#FannieMaeFreddieMac1

My bet is on Director Watt. He, along with the leadership of Fannie and Freddie appear poised to “successfully complete the plan” so that they can “terminate the conservatorship.”  Momentum is shifting in Mr. Watt’s direction.

Advertisements

2 thoughts on “Secretary Lew’s Consumer Financial Protection Bureau: GSE’s now part of US Government

  1. I would also point out that FNMA and FMCC are still paying taxes on the profits before the Treasury sweeps the remainder so that certainly implies we are a privately owned company. It is also the likely cause for people thinking we paid back the Treasury earlier. They applied all profits as though they had all been swept to the Treasury but a little over 30% of it went to the IRS and will never be applied to the pay back. This offset amount has only recently been met as confirmed by the CEO of FNMA recent statement to that effect. The sweep is now ripe and soon to be a taking.

    Like

  2. This how WS Gov officials created an impression that Gov owns FnF, and Shorts can decimate FnF with impunity.
    Before Watt, DeMarco was a just puppet in the hands in these people.
    Watt has a strong connections to power and we have to see how independent he will be.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s