Search This Blog

Friday, July 5, 2019

Trump may scrap Fannie/Freddie reform if plan comes under fire: Cowen

Cowen analyst Jaret Seiberg wonders if President Trump will “turn on housing finance reform if the public narrative is that government is getting a bad deal,” Seiberg writes in a note to client.
Fannie Mae (OTCQB:FNMA -1.2%) and Freddie Mac (OTCQB:FMCC -1.5%) slide.
Potential points that may trigger criticism  — returning to “a system where taxpayers take the risk and investors reap the gains,” or if the plans calls for forgiving $200B in outstanding preferred stock owned by the Treasury.
Current plan calls for pushing housing finance reform agenda over the next year and a half; White House position paper is due this month, Seiberg writes.

No comments:

Post a Comment