Steve Mnuchin

As most of us know by now, Steve Mnuchin announced the Trump Administration’s intention to end the conservatorship of Fannie and Freddie during an interview on Fox News on November 30 seen here: https://youtu.be/WAFLne-LRxw

The results were likely predictable – stock prices rose and Mnuchin was attacked by the opposition. Many articles ran in the big bank-influenced media soon after, including one in the WSJ titled, Mnuchin Has Stake in Fund That Would Gain From Fannie Mae Revival.

The attack against Mnuchin was simple – the only reason he stated the eight year long conservatorships must end was his desire to enrich his friends and himself.

During his confirmation, in response to the attacks, Mnuchin preemptively stated his opinion on Fan/Fred was based on his decades-long experience in the mortgage industry (and not motivated by potential personal gain) as seen here: https://youtu.be/KySH-n7TbKE?t=3m34s

The Senate Finance Committee is set to hold an Executive Session tomorrow at 6:00 PM EST to consider endorsing Mnuchin’s nomination. Orrin Hatch, committee chairman, stated:

“Committee members and the American people heard a strong case from Steven Mnuchin on why he should be Treasury Secretary,” Hatch said. “His seasoned career as a financial leader equip him with the ability to steer the American economy in the right direction. And his commitment to work with Congress to reform our outdated tax code and explore ways to improve our nation’s broken infrastructure system should garner the support of my colleagues on both sides of the aisle. I look forward to the Committee voting on his nomination.”

The long-awaited beginning of the end of Fanniegate is finally here…

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2 thoughts on “Steve Mnuchin

  1. fanofred,

    Thanks for bringing the obvious truth to the fore.
    The response from FE and FE sponsored media is very predictable.

    It is worth reminding these facts to these people.

    1. “it’s not honest opposition…People who do not play fair also fight hard.”

    2. “To support their arguments for restricting Fannie and Freddie’s business or eliminating them, these opponents routinely distort the truth or simply make things up about them. Honest critics don’t do that.”

    3. “The real, incontrovertible, “flawed business model” leading up to the crisis was private-label securitization. Fannie and Freddie’s opponents NEVER mention private-label securities, or the fact that the complete lack of regulation of this “private market” mechanism allowed everyone who participated in it to make money from loans that had little chance of being repaid,…”

    4. “And the critics of Fannie and Freddie who blame these companies for the financial crisis also ignore the fact–available to anyone who cares to check–that in the three years leading up to the crisis, private-label securities financed more home loans than Fannie, Freddie and Ginnie Mae securities combined, and that the subsequent credit losses on those private-label securities were nearly EIGHT times the credit loss rate of loans purchased or guaranteed by Fannie and Freddie.

    5. Critics of Fannie and Freddie simply pretend that the disastrous private-label securitization experience never happened, and counterfactually blame Fannie and Freddie for the crisis.”

    Like

    • Thanks and excellent points. The FE will no doubt continue their fight, but may be better served adjusting to the new Admin’s paradigm shift when it comes to not winding down FnF.

      Like

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