Context FHFA Dir. Calabria's Latest Comments The Non-Fake-News Version
Context FHFA Dir. Calabria's Latest Comments The Non-Fake-News Version
Context FHFA Dir. Calabria's Latest Comments The Non-Fake-News Version
Joshua Rosner
646/652-6207
jrosner@graham-fisher.com
It is our view that both Bloomberg and Politico appear to have mis-contextualized FHFA Director
the time that the GSEs have accessed the capital markets
requirements;
would mean that a future UST can prevent the GSEs from ever
2. The longer this process takes, the greater the risk the capital
c. However, proper context reminds us that Dir. Calabria has previously and
publicly stated;
conservatorship;
i. Dir. Calabria again stated the GSEs should retain earnings for
1-1.5 yrs. But the context of this statement appears to have been
lost
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The Spew November 2019
in the reporting- the GSEs have been retaining earnings since April
ii. The PSPA amendments and Capital Rule are likely to be done
the PSPAs must address the periodic commitment fee payments for
iii. Only after these milestones have been met could the GSEs be
disapprove);
iv. Upon eventual approval of these restoration plans the GSEs could
as public companies;
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The Spew November 2019
vi. The GSEs would likely continue to operate under consent decrees
until at least the time they reach regulatory capital – at which time
Presidential elections;
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The Spew November 2019
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