If Congress Won’t End GSE Conservatorship Soon, FHFA Can

American Banker - October 10, 2014 - October 10, 2014

American Banker, By Clifford Rossi

Last week, a D.C. District Court Judge struck down a lawsuit brought by shareholders in Fannie Mae and Freddie Mac who had been seeking to stop the government from taking the profits from the two agencies. The suit will be appealed, but setting aside the legal disputes for a moment, the U.S. government still has a big issue to confront: what to do about the two government-sponsored enterprises.

Congressional inaction has effectively forestalled any serious plan for bringing Fannie and Freddie out of conservatorship. The sheer complexity of GSE reform, coupled with a nearly unprecedented schism between political parties, explains why comprehensive change is, for the time being, elusive at best.

Read the full article here: If Congress Won’t End GSE Conservatorship Soon, FHFA Can